Last night we took a long view of equities whilst sitting atop a truck.
Tonight, we take another long view of the market, only this time, while standing on a galloping horse.
Hence, coming into today we looked at how the Volatility ETF (VXX) would do, and how the inside days would resolve, particularly in stock market leaders the Semiconductors Sector (SMH) and the NASDAQ 100 (QQQ).
Today that inside day handily reconciled to the upside.
With that said, the Dow Jones Industrials (DIA), Russell 2000 (IWM), and the strongest sector (Semiconductors – SMH) returned to unconfirmed bullish phases.
Furthermore, the NASDAQ 100 made a new all-time high.
Meanwhile, key ETFs like IBB, KRE, XRT all confirmed their caution phases.
How long can our cowgirls keep the ride going?
If you liked the inside days, you’ll love the inside weeks.
Let’s look at the charts:
Semiconductors SMH is having an inside week. Trading range to break one way or another-145.58-136.96.
Biotechnology had an inside day but is not having an inside week. That can be construed as positive as it took out last week’s high at 117.98. That is support to hold. Plus, watch for this to clear the 50-DMA.
Retail is having an inside week. 45.15-42.90. Granny is still weak.
The Transportation Sector (IYT) is also having an inside week. 197.95-188.93 is the range to break. Note Granny and Tran are in Caution Phases.
Regional Banks, also in a caution phase took out last week’s high. 55.84 is now pivotal
The Russell 2000 IWM is yet another one having an inside week. 165.56-160.03 is the range to clear one way or another.
In order to keep on that galloping horse, these caution phases have to improve, and the inside weekly trading ranges must take out last week’s highs.
If they fall remember that “Even Cowgirls Get the Blues.”
On July 12-13, 2020, I will be speaking/teaching at the Modern Traders Summit in Philadelphia. Only 5 speakers, which means attendees will get a lot of attention, I hope to meet many of you there: https://moderntraderssummit.com/2020-speakers/
S&P 500 (SPY) 327.18 is a pivotal support to hold.
Russell 2000 (IWM) 164.25 must hold.
Dow Jones Industrials (DIA) 284.80 is the 50-DMA underlying support with 287.62 first line.
Nasdaq (QQQ) Closed on new all-time highs so now, must hold the low 224.65
KRE (Regional Banks) 53.90 the 200 WMA and 54.00 is the 200-DMA. Resistance is at 55.85
SMH (Semiconductors) 140.20 is key price support. Needs to clear 144.
IYT (Transportation) Confirmed caution phase. 189.68 is support.
IBB (Biotechnology) 117.13 is price support, while 119.50 is resistance.
XRT (Retail) 43 support at the 200-DMA and must clear 44.23
Volatility Index (VXX) If clears 15.22 and then 15.44 still worth a look.
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.
