For the past couple of weeks, the Russell 2000 (IWM) has been a major focus for traders and investors that have been cautious given the struggle IWM has gone through in its current trading range.
Now that it has cleared its pivotal 50-day moving average at $221.96 it will look to confirm a bullish phase with a second close over the moving average on Thursday.
Additionally, IWM has been a key stock market indicator for bullish market sentiment. If IWM confirms its phase change each major index will be in a bullish phase.
At that point, the stock market can gear up for new highs.
Thursday morning, two economic reports-Jobless Claims and Durable Goods, could set the stage for the rest of the week.
Durable Goods will give insight into the current U.S supply chain which has gone through issues including shortages of semiconductors, to building supplies as the housing market made leaps and bounds with cheap mortgage rates along with increasing demand as people spread out to new states throughout the pandemic.
Circling back, the economic reports could bring negative news based on increasing inflation and missed expectations.
With that said, the market has great potential to make a strong move higher if Thursday’s reports come out positive now that IWMs’ restrains have been cut with its clearing of the 50-DMA.
Watch Mish on Fox Business – Making Money with Charles Payne:
Stock Market ETFs Analysis and Summary:
S&P 500 (SPY) Resistance 422.82
Russell 2000 (IWM) Watching for a second close over the 50-DMA at 221.99.
Dow (DIA) Needs to clear 345 and hold.
Nasdaq (QQQ) Next resistance 336.65
KRE (Regional Banks) 68.16 support.
SMH (Semiconductors) 242.39 needs to hold as new support.
IYT (Transportation) 267.44 support.
IBB (Biotechnology) 147 support. Held the 10-DMA at 149.95.
XRT (Retail) Filled the gap at 93.52.
Twitter: @marketminute
The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author and do not represent the views or opinions of any other person or entity.
