4 of 6 Core “Economic” Stock Market ETFs Performed on Command

Michele Schneider

On Friday, the Russell 2000 (IWM), the Semiconductors Sector ETF (SMH), the Transportation Sector ETF (IYT) and the Regional Banks ETF (KRE) performed on command. 

Not quite as adorable as four Havanese pups I ran into recently, the one index and three other sectors did at least keep the bulls smiling.

The Havanese breed has a spirited personality and is noted for its springy gait. 

They adapt to almost any environment. 

Furthermore, they do not like to be isolated for any length of time. In fact, they are often called the “Velcro dog.”

Perhaps not as spirited, IWM, SMH, IYT and KRE did at least demonstrate a springy gait.

Yet, like the Havanese, the members of the Economic Modern Family of stock market ETFs, or economic pack if you will, do not like to be isolated.

In this case, the four were isolated from the other two remaining members of the pack.

Neither Biotechnology IBB nor Retail XRT, joined the cutefest on Friday.

That leaves us wondering for Monday:

Will the Modern Family adapt to any environment?

Or,

Will their isolation from the two absent members of the pack give way to anxiety?

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Top left is one of the stars of the dog circus I featured last week, Transportation. Note how well it rallied last week and put distance between it and its 50-week moving average.

The Russell’s (top middle) are just peeking above the 50-WMA for the second week in a row. Although compared to IYT, the performance is so-so.

Move over to the right and we see one of the missing dogs, IBB. It fell all the way down back to its 50-WMA. Interestingly, that is the most highly speculated sector. Is the public not buying into this rally? Or is this just sector rotation.

Bottom left is Regional Banks. Still quite far from its 50-WMA at 57.43, it can get there only if IWM holds and IBB does not fall apart even more.

Retail is the other missing dog. XRT closed red and is not too far from potentially failing its 200-WMA (green line). If that happens, it should have an impact on everyone else.

The top Havanese performer is Semiconductors. Like the breed, SMH seems to prefer watching the market from up high. Not to be outdone, when the market rallies SMH sits on the highest table it can find.

This coming week, we will be watching to see how easily XRT and IBB can be trained. 

We will also watch to see just how much high maintenance it will take to keep the other four springy and spirited. 

S&P 500 (SPY)  – Swing high at 290.47 with all-time high 293.94. 287.70 is pivotal 10-DMA support.

Russell 2000 (IWM) – 159.50 the February high. Friday high 158.16 so still a way to go. 156.30 is the support to hold.

Dow Jones Industrials (DIA)  – April 5th high 264.84. Friday high 264.39. That means must hold 262.50 

Nasdaq (QQQ)  – New swing high 185.95. All-time high 187.53. Has to hold 184.30

KRE (Regional Banks) – Unconfirmed recuperation phase making 54.28 important support to hold on the close Monday.

SMH (Semiconductors) – New swing high at 113.91. All-time high 114.55. Has to hold Friday’s low 112.96 

IYT (Transportation) – New swing high at 196.36. Really far from its all-time high. 192.65 the immediate support to hold.

IBB (Biotechnology)  – 110.70 the 50-WMA to hold.

XRT (Retail) – 45.50 now pivotal resistance with 44.48 key support.

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