I always enjoy stepping back at the end of the week to see what our key stock market ETFs have done (aka our Modern Family).
The theme all year has been the disparate relationships among the Modern Family sectors.
While our “sister”, the Semiconductor stocks/ETF (SMH) has not only showed up at the party, she has also imbibed a few cocktails.
Meanwhile, her Family stands at the entrance hall.
But, that’s progress.
It’s been a tough haul getting them dressed and pushing them out the door.
Now that they have accepted the stock market party invitation, how long might they stay?
Top left is our resident “granddad”, the Russell 2000 index ETF (IWM).
He represents the hesitation to fully join in the festivities.
Although he stands in the doorway, the weekly chart pattern has yet to shift from lower highs.
I would venture to say that should the Russell 2000 ETF (IWM) gap higher on Monday, 165 is not out of the question. However, a move under 156 would mean Gramps decided to head home to bed.
Top middle is our “Prodigal Son”, the Regional Banks Sector ETF (KRE). Think about it…with the S&P 500 SPY at new all-time highs, KRE cannot even get past July highs.
Top right is the Transportation Sector ETF (IYT).
Likewise, IYT has not cleared July highs. Furthermore, like IWM, IYT has made lower highs since it’s zentih in 2018.
Bottom left is “granny”, our brick and mortar Retail Sector ETF (XRT). I would have preferred to see XRT close over the 200-WMA (green line).
Now that November is here, the consumers need to step up to the plate.
Big Brother Biotechnology Sector (IBB), also not above the July high, takes a step further into the parlor to join the party. Nevertheless, IBB does tend to get to the party late, just when the early birders are bidding each other good night.
Which leads us to Semiconductors, SMH. Another all-time high for this party animal.
Crazy thing is, she seems to have a wooden leg as even in uncharted territory, SMH is not overbought.
So, as we head into this week, the economic Modern Family needs to prove it’s commitment to party.
Otherwise, those that have committed will find themselves overstaying their welcome.
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S&P 500 (SPY) 302 support. All-time high 306.19.
Russell 2000 (IWM) 155-156 Key support 158 pivotal 160 resistance. Should IWM gap higher on Monday, 165 is not out of the question.
Dow Jones Industrial Average (DIA) 270 support. 273.99 ATH
Nasdaq (QQQ) All-time highs at 198.88. 197.65 support.
KRE (Regional Banks) 55.00 pivotal 55.74 July high.
SMH (Semiconductors) 126.50 support and ATHs at 130.16
IYT (Transportation) 195 key to clear 189.40 pivotal support.
IBB (Biotechnology) 110.93 the July high with 108 nearest support.
XRT (Retail) 44 failed-now pivotal resistance. 43 support.
Twitter: @marketminute
The author may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
