Trading Levels for Important Stock Index and Sector ETFs

Michele Schneider

Thursday’s Levels for Indices and Key Sectors

Last night we talked about the six phases and how none of the four indices had changed phases yesterday.

Moreover, we said that in the economic modern family (the Russells IWM, Retail XRT, Regional Banks KRE, Transportation IYT, Biotechnology IBB and Semiconductors SMH), disparity is culpable.

And that only SMH was in a bullish phase. 

Today, with the news of a meeting between the U.S. and China in October and some healthier economic numbers, the market gapped much higher.

That made chasing a bit dicey. However, phases did change in several instruments.

The S&P 500, Dow and NASDAQ all turned bullish (must confirm).

While the Russell 2000 started out strong, it could not get enough traction to improve from its current distribution phase.

So, there’s still disparity looming large.

As for the rest of the Family, Semiconductors confirmed the bullish phase, Transportation IYT went into an unconfirmed bullish phase, phase while Retail XRT,Regional Banks KRE, Biotechnology IBB, allremained in bearish phases.

I place a lot of emphasis on Transportation, so the strength there today makes the picture for the others more optimisitic.

Nevertheless, IWM, KRE, XRT and IBB have to perform a lot better than what we saw today to keep the party going. 

That is why I added at the end of yesterday’s daily, “We need to see some unity among the economic modern family and more positive phase changes.”

Check out the key levels.

S&P 500 (SPY)  Well, it sure gapped over 294. Now, that is the bottom-line support. 300 will be the resistance with ATH 302.23 

Russell 2000 (IWM) 148.00 is rock bottom support. 150 closer support. Now, it needs to close over the 50-DMA at 150.78 and ideally close over the 200 DMA and 50-WMA at 152.15. 

Dow (DIA)  265.68 is the 50-DMA which is now the number to hold. 270 area resistance to clear.

Nasdaq (QQQ)  189 the 50-DMA cleared making that the key support. We knew this would be the strongest, so now it must continue to lead with all time high 195.55

KRE (Regional Banks) 49.50 pivotal support. On the weekly charts, it needs a close over 52.10 then 53.15 to get interesting.

SMH (Semiconductors) We do love our sister semiconductors. With the gap higher, ideally, 118.00 area is the support to hold so the gap remains. Resistance 121.43 then ATH 123.56

IYT (Transportation) Cleared 185.55 or the 50DMA so that is the area to hold. 189 next resistance.

IBB (Biotechnology)  The 200 WMA at 102.67 must clear/hold by the close tomorrow.

XRT (Retail) Gapped right over 40.00 and closed in an unconfirmed recuperation phase making 41.14 the area to close the week out over.

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.