Mish’s Economic Modern Family is made up of 5 key sectors and 1 index.
Each member has been specifically chosen to help investors/traders navigate the market by giving an easy way to see emerging trends and important price levels.
The Family consists of:
Granddad Russell 2000 (IWM)
Granny Retail (XRT)
Prodigal Son Regional Banks (KRE)
Brother Biotech (IBB)
Sister Semiconductors (SMH)
Friday, IYT broke to new all-time highs.
Additionally, IYT holds an important underlying value as it represents the demand side of the market.
If goods are being moved and people are traveling, that bodes well for every other Family member.
This is where IBB, XRT, and KRE come in.
All three have pulled back to major moving averages which are often viewed as support levels.
XRT and KRE by their 50-day moving average and IBB the 200-DMA.
With Transportation’s support, come Monday, we can watch for these sectors to move higher as they spring off their moving averages.
With that said, while transportation has played its part as a leader, it will need participation from two special Family members.
The small caps (IWM) and Semiconductors (SMH).
Friday both were able to rally over their 50-DMAs by the close, which means if both can hold over their MAs, the rest of the Family members along with the overall market will have a good reason to move upwards Monday.
A rare chance to watch Mish’s interview on Real Vision with Max Wiethe
https://rvtv.io/39xw6xV. The password is: 2021Schneider0325
Also, watch Mish take a fresh Look at Emerging Markets on StockCharts.com
Symbols: EEM EWT EWY GREK EWS EWW THD IFN INDA EWA EWU EWH EZA EWQ SPY EWJ EWP RSX EWG EWL FXI EWM EWZ AAXJ ILF VGK
S&P 500 (SPY) Support 386.52 398.12 Resistance.
Russell 2000 (IWM) Needs another close over the 50-DMA 220.52
Dow (DIA) 332.86 high to clear.
Nasdaq (QQQ) Needs to stay over 309, 312 pivotal, 321 resistance and key
KRE (Regional Banks) Support 50-DMA at 63.16
SMH (Semiconductors) 238 needs to hold as new support.
IYT (Transportation) New highs.
IBB (Biotechnology) Main support the 200-DMA at 144.77
XRT (Retail) support 82.13 Needs to clear 10-DMA next.
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.