The Weekly Scene in the Economic Modern Family

With all the opposing opinions on whether or not the market is topping or pausing for another leg up, it’s time to show the Family.

Once again from left to
right

Top row-Granddad
Russell 2000 IWM, Granny Retail XRT, Brother Tran Transportation IYT.

Bottom row-Big Brother
Biotechnology IBB, Prodigal Son Regional Banks KRE, Sister Semiconductors, SMH.

What is the Family
telling us?

IWM broke the
50-WMA at 157 intraday and closed right on it. That makes it easy, right?

A weekly close
below, sell signal. A close above, (especially above 158), most likely more
upside.

IYT is above its
50-WMA at 189.65. Line in the sand. And if it can clear last week’s high, 195
next stop.

XRT is having an
inside week so far. But, with decent earnings in Dillard’s and Macy’s, if it
can hold above 44.60 and clear 46, could see 47 are next.

IBB cleared the
50-WMA last week for the third time. Third time a charm? 109.87 key area to
hold.

KRE is holding
over 56.00. 58.30 is the overhead 50-WMA. If the market stays firm, we should
see that level tested. If not, under 56.00 trouble.

Finally, SMH has
established 104 as the major support closest by. As the leader, if SMH gets
going again, we could see 110. However, with the now confirmed topping pattern
this week, we could also see a move down to 101 area.

All in all, these
weekly snapshots give us an excellent way to step back and remove ourselves
from the noise.

The Family might
scream once in a while, but in the end, they always show us the way.

S&P 500 (SPY) With the close under 279.43 it confirms a topping pattern. That means it can either drop to around 260 or must clear 281.31.

Russell 2000
(IWM)
Closed under the 200 DMA and the 50-WMA. Alone,
that would not be concerning. But with IYT end of day weakness, we have to
watch how both play out from here

Dow (DIA) 260.30 was the
last swing high before the crash. Friday high 260.40. It’s holding there on a
closing basis until that changes

Nasdaq (QQQ)
172.10 the 200-DMA pivotal. Nasty reversal
patterns in all indices confirmed today

KRE (Regional Banks) 58.18 the 200 DMA overhead with 56 the best underlying support then 55.00

SMH (Semiconductors) 104 first pivotal support. Then 102. Topping pattern here too

IYT
(Transportation)
Broke the 200
DMA but not the 50-WMA. If does, writing for a much bigger correction on the
wall

IBB
(Biotechnology
) 109.83 the
pivotal point.

XRT
(Retail)
44.62 pivotal support with 46.80 major
resistance