Important Stock Market ETFs Could Be Forming “Inside Weeks”

Michele Schneider
stock market etfs investing technical analysis inside weeks chart ending january 24

Today I am taking a look at the weekly charts of the Economic Modern Family of stock market ETFs: Russell 2000, Transportation, Retail, Regional Banks, Biotechnology and Semiconductors.

I believe they are telling investors a mid-week story.

With the exception of the Semiconductors Sector ETF (SMH), all the other members are trading inside the trading range of last week.

What does that tell investors?

To review, last night we looked at the Junk Bonds ETF (JNK) as a gauge of investor’s appetite for risk. 

The 2020 high for JNK thus far is 110.33.

The price stopped right at a key trendline last week. 110 is pivotal. A move over 110.33 will indicate a breakout with more upside to come.

Today, JNK held 110.

Back to the Family, inside weeks give us a chance to have patience and watch to see which way the trading ranges break.

With Semiconductors SMH (top left), the only one above last week’s range, one might assume it continues to lead and will engender the other members to catch up.

Perhaps.

Looking at the others, with the inside week thus far, we will soon know if SMH trades unrealistically bold, or if it is still the best indicator of a better economy to come.

If you have to track one, I suggest the Russell 2000 ETF (IWM). The range to break-170.56-164.07. 

Second choice is the Transportation ETF (IYT). That range to break is 203.89-196.60.

S&P 500 (SPY) New ATH and then close on intraday low. 328.60 support 

Russell 2000 (IWM) 166.93 is a pivotal price area.

Dow Jones Industrials (DIA) Inside day. 290.35 is the support level to hold.

Nasdaq (QQQ) Made another new all-time high by a few cents and now 220.85 is important price support to hold.

KRE (Regional Banks) Confirmed caution phase with 57.10 as pivotal price resistance and 56.20 as support.

SMH (Semiconductors) A new all-time high and close on the intraday low. 144.90 is pivotal price support.

IYT (Transportation) 195 is major price support with 200 being pivotal.

IBB (Biotechnology) 120.92 is pivotal resistance with 118.50 support.

XRT (Retail) 45.40-46.00 is pivotal.

Twitter: @marketminute

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.

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