Regional Banks ETF (KRE): Ready to Fizzle or Sizzle?

With the Russell 2000 breaking out over the 50 and 200-week moving averages, the market does look like blue skies, right?

Well let’s run through the list of key stock market sector ETFs that we mentioned in last evening’s post:

The Retail Sector ETF (XRT) ran to just over $50.00

The Semiconductors ETF (SMH) rocked to another new all-time high.

The Transportation Sector ETF (IYT) passed the critical test at the 200-week moving average.

The Biotechnology Sector ETF (IBB) consolidates over the 5-year breakout.

But what about the Regional Banks ETF (KRE)?

Regional Banks – The Prodigal Dunce?

kre regional banks sector etf stocks weak investing performance chart august 5

The Regional Banks Sector (KRE) is in a bearish phase.

The sector ETF is having 2 inside weeks.

And that makes it easy.

A move/hold over 38.70 should be followed for a possible run up as shorts are plentiful.

It could also mean that the sector believes there will be a stimulus package passed.

A move/hold below 36.80, and regardless of the lofty prices elsewhere, I would take that as fair warning.

S&P 500 (SPY) 325.50 now pivotal support 332.58 a must gap to fill 

Russell 2000 (IWM) 149 key support and took out June 8th highs. 

Dow (DIA) 270 now pivotal

Nasdaq (QQQ) Another low volume day so 270 key

KRE (Regional Banks) See commentary 

SMH (Semiconductors) 165-168 pivotal support as it is over an ascending channel

IYT (Transportation) 179-180 now key support

IBB (Biotechnology) 142 resistance 136 support

XRT (Retail) 50.00 now pivotal 

Volatility Index (VXX) Inverted hammer doji-that’s a head’s up

Junk Bonds (JNK) 105.30 key support 

LQD (iShs iBoxx High yield Bonds) 137.75 support to hold

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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.