Friday gave the thrill of a roller coaster ride, as we watched the major stock market indices run up and down throughout the day.
While it’s not the ride most investors look for in the stock market, it’s the best they can get since most amusement parks have yet to re-open.
It also looks to stay this way as the United States watches Europe get hit by a second wave of Covid cases.
Without a vaccine this could lead the US to be more wary of lifting restrictions as we head into the close of the year.
Through all this insecurity, our core family of stock market ETFs continues to hold strong.
Five of the ETFs hold a bullish phase while the Regional Banks ETF (KRE) improved into an accumulation phase on Thursday.
In the chart below, we can see that the regional banking sector (KRE) has made the largest gain of over 7% since Monday.
This could support the idea of a rotation out of the tech sector and into the financial sector.
Being the weakest sector, a comeback through $43 and the 50 week moving averages is a good place to keep watch.
Going to the daily charts we can see that the Russell 2000 ETF (IWM), Transportation Sector ETF (IYT), and Retail Sector ETF (XRT), are digesting their price ranges.
The Biotech Sector (IBB) and Semiconductors (SMH) on the other hand have come off a little more.
IBB has the 50-DMA as support at $135 with SMH attempting to create support from Thursday and Fridays low around $182.
The markets have put us all through a wild ride, but for at least a small amount of time the Modern Family holds its breath as they wait for the next big piece of news.
Is The Economy Going To Improve? Mish’s picks are playing out. Bitcoin, Food Commodities, Transports and more are all out performing. Be sure to check out previous weeks episodes to catch up on where you should be looking in the market. https://www.youtube.com/watch?v=kQsxMzReBCs&feature=youtu.be
Real Vision editor, Max Wiethe, joins Mish Schneider, to discuss what the remainder of 2020 holds for markets. Schneider revisits her thoughts on stagflation and how that is currently playing out in the markets as well as the several sectors she has her eye on through the lens of her economic modern family and beyond. She also speculates on how the markets may react to the U.S. presidential election outcome and reveals a stock pick whose future performance may come as a surprise.
S&P 500 (SPY) Holding range between 10 and 50-DMA. 346 to clear
Russell 2000 (IWM) 155 best underlying support. Resistance at 164
Dow (DIA) 285 Pivotal area with support at 280 the 50-DMA
Nasdaq (QQQ) 290 resistance. Bounced off 280 support the 50-DMA
KRE (Regional Banks) Confirmed Accumulation phase. Watching to clear 50-WMA at $43
SMH (Semiconductors) Holding 184 support.
IYT (Transportation) 200 support 212 to clear
IBB (Biotechnology) Back in a bullish phase, but looks like it could test the 50-DMA again.
XRT (Retail) 52 support thru 55 better
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.