Wednesday turned out the perfect pre-July 4th trading session.
The Dow Jones Industrials (NYSEARCA: DIA), NASDAQ 100 (NASDAQ: QQQ) and S&P 500 (NYSEARCA: SPY) made a new all-time high.
The Modern Family worked in concert with one another.
The Biotech Sector ETF (NASDAQ: IBB) cleared the 50-week moving average.
So did Transportation Sector ETF (NYSEARCA: IYT) and the Russell 2000 (NYSEARCA: IWM).
Like fireworks, the day was short and explosive.
Question is, will we see more eye-popping display on Friday?
Interestingly, the money rotated out of SMH Semiconductors, although SMH remains in a bullish phase.
Retail XRT continues to struggle as do Regional Banks KRE.
What we want to see for Friday is confirmation in IYT, IBB and IWM, or another day above their 50-WMAs.
We also want to see XRT clear 43.15 and KRE clear 55.10.
Otherwise, we can have a repeat of May 3rd. That is the day that KRE hit it’s 50-WMA. It was obvious that it struggled to reach that level and therefore, spelled the top of the overall market. That is, until the new highs we saw on Wednesday.
The lukewarm economic stats are giving cheer to investors as they see lower rates on the horizon coming to save the day.
However, consumerism and regional banking will have to join the party for real. Othewise, we could see IWM and IYT in particular, giving up their 50-WMAs once again.
Like folks who never learn to clear away from a lit firecracker thereby suffering injuries, investors may have to learn a hard lesson that negative rates might turn out equally dangerous.
S&P 500 (SPY) – 298.82 printed a new all-time high. Support at 296.92 the old high.
Russell 2000 (IWM) – 154.70 is the major pivotal 50-WMA to hold 161 resistance overhead.
Dow Jones Industrials (DIA) – 269.60 the new all-time high. 267 support.
Nasdaq (QQQ) – 191.44 the new all-time high. 188 support.
KRE (Regional Banks) – Inside day.Unconfirmed recuperation phase with 53.30 first pivotal area and 55.10 overhead resistance.
SMH (Semiconductors) – 115.70-116 resistance. Support at 110 then 108.80
IYT (Transportation) – 190 first level to clear again. Support at 188.65
IBB (Biotechnology) – 109.45 the pivotal support. 111.50 resistance.
XRT (Retail) – 42.45 pivotal area-has to get back above 43.15. Support at 41.75
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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.
