With all the news out there, following the technical conditions has given us incredible confidence in our trading strategies.
This is the fourth week we've covered Economic Modern Families for Weekend Update.
And the family did their part.
Since 4 weeks ago, when Retail Grandma and Russell Grandpa were sold off heavily after failing to break weekly channel highs –
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The previous week when both held significant weekly moving averages –
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Last week, Sister Semiconductors once again took the lead as the only member to retake the weekly channel lows, following gains from Google (NASDAQ:) and Microsoft (NASDAQ:).
The family has made us cautious and prepared for adjustments and subsequent backlash. So, how can you prepare for this week?
Before we move on, let's talk about semiconductor SMH.
If it weren't for our Wonder Woman, would we even have covered the possibility of the rest of the Family coming together?
After the amazingly scary red candle a week ago, there's been a lot of hoopla this week, but it's still only an internal week.
Green candlesticks indicate that we are within last week's trading range.
The best part about the chart is that SMH has returned to the weekly channel. There is still much work to be done now.
Maybe you can save the day?
Look at Grandma – This pop looking beyond the 200 week moving average is a great start.
But is that enough?
Keep $75.00 in mind as XRT needs to clear that level to continue rising further.
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As for the rest of the family,
() also had an inside week, holding the 200-WMA and finding resistance at the bottom of the weekly channel.
Another week in biotech is the mischievous child of the family. If IBB can clear the 50-WMA (blue), it will be a positive.
The biggest concern this week is transportation.
This week ends essentially unchanged, but additional slides will be sent this week. red flag.
Last week we had a friendlier start to the week thanks in part to the relative strength of KRE in the local banking sector, but we will be keeping a close eye on IYT this week.
We've watched the family get thrown curveballs from their first rock bottom to their second peak.
IYT transportation is critical to gauging the next movement of the economy and market.
Isn't that much easier than tracking interest rates, inflation, economic statistics, earnings, and media stories?
ETF overview
- S&P500 (SPY) Still in warning stage – 500 currently supports 511 50-DMA tolerance
- Russell 2000 (IWM) Still in the caution stage – 190 Support 200-202 Resistance
- Dow (DIA) Still in warning stage 380 support 388 resistance
- Nasdaq (QQQ) Still in warning stage 430 Resistance 437 Resistance
- Local bank (KRE) Range of 45-50
- Semiconductor (SMH) Still in caution stage 204 Support 220 Resistance
- Transportation (IYT) 65 Support 67 Resistance
- Biotechnology (IBB) 128 Resistance 125 Support
- Retail (XRT) 71.50 Support 75 Resistance
- iShares iBoxx Hi Yd Cor Bond ETF (HYG) Be careful if it is less than 76.50
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