This morning, the ISM report initiated a rapid sell off.
With a relatively healthy bounce back throughout the day the question is: bottom or short term bounce?
The indices will give us a better view of the broader picture.
Before we go to the levels, please note that yesterday’s Daily on MJ, the cannabis ETF was timely. Today, MJ rallied nearly 4%.
S&P 500 (SPY) 281.24 the 50-WMA with 286.86 a weekly EMA support level. I would exercise caution if price breaks below 283.58 200-DMA. A gap fill to 293 would be more constructive
Russell 2000 (IWM) 146 September low still pivotal with 140.97 200-WMA as support. 50-DMA crossed under 200-DMA for a death cross.
Dow (DIA) Would like to see it hold 258.60 200-DMA and 257.24 50-WMA. 265.45 is the gap fill if good
Nasdaq (QQQ) The best looking of the indices. Clearing the 188.50 50-DMA would make it even stronger. Has to hold 182.00 the weekly EMA
KRE (Regional Banks) Holding well above 50.00. Near term resistance at 51.75 50-WMA
SMH (Semiconductors) 116.23-DMA support is key. 200-DMA on the daily and weekly both positive and in line with the strength of the QQQs. This filled the gap which is a plus for this sector
IYT (Transportation) 174.26 the August low. Needs to fill the gap as well to 181.08
IBB (Biotechnology) Potential reversal in the works with 97 pivotal support and 100 immediate resistance.
XRT (Retail) 41.10 50-DMA pivotal.