Earnings season is upon us and the banks have been kicking it off.
However, the kickoff has been weak as seen in the above chart of the regional banking ETF (KRE).
With that said, if KRE can clear and hold over its 10-Day moving average on both price and our Real Motion momentum indicator, we could get a rally in the banking space.
Currently, Real Motion can be seen with the red dotted line sitting just under its 10-DMA at the bottom of the chart.
Last Friday, Wells Fargo (WFC) reported earnings and is now having an inside day chart pattern.
Like KRE, WFC will need to clear over its 10-DMA in price and momentum.
If the 10-DMA can be cleared, the support area to hold is from $45.03 to $45.77 as seen by the black lines on the above chart.
While WFC has already reported, National Bank Holdings (NBHC) reports after Monday’s close.
Depending on where NBHC opens on Tuesday, watch for it to clear the 10-DMA in price.
On the momentum side, it has already cleared the 10-DMA showing that momentum is leading price. When it comes to risk on NBHC, a tight risk looks the best under Monday’s low around $37.93.
Stock Market ETFs Trading Analysis & Summary:
S&P 500 (SPY) 440 is pivotal.
Russell 2000 (IWM) 195.88 needs to hold.
Dow Jones Industrials (DIA) 343 is pivotal.
Nasdaq (QQQ) 338 is minor support.
KRE (Regional Banks) 66.85 is level to clear.
SMH (Semiconductors) 237 is price support.
IYT (Transportation) Watch to stay over 243. Price support at 239.
IBB (Biotechnology) 128 the 50-day moving average could not hold.
XRT (Retail) Needs to clear 77.09 and hold.
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.
