Trading Levels For Key Stock Market ETFs – Friday, August 2

The market continued lower again today, confirming investors concerns about the Fed and/or using it as an excuse.

In today’s recap, I provide key price levels across important stock market ETFs and quote my article from July 31 with 5 factors to watch:

1. The (central) banks want to see higher inflation.

2. Stock buybacks by corporations are out of control. The S&P 500 companies for example, are on track to buy back another $940 billion of stock in 2019. That means that companies are now returning more cash to shareholders than they are generating in free cash flow. This is exactly why we saw a vacuum of no bids on the way down yesterday (and today.)

Sign up for our FREE newsletter
and receive our best trading ideas and research

3. In times of economic turmoil, the mentality can switch from too much raw material supply (deflation) to one of hoarding the raw material supply (inflation).

4. Although gold and silver sold off yesterday, the recent action proves that there is an investor appetite for metals. It will be interseting if buyers come back in now that both metals are holding support. THEY SURE DID!

5. Should the dollar begin to falter, I would take that as a sign that many of the undervalued commodites will begin to look attractive.

One day ago: The Bottom line is that August has had some historically huge selloffs. And since the market’s solvency has been mainly due to dovish monetary policy and corporate buybacks, this might be a really good time to check your stock holdings, trim the fat, reduce exposure, and go enjoy some down time.

S&P 500 (SPY) 299.30 resistance with support 292.30 where the 50 DMA sits. 

Russell 2000 (IWM) 155.74 now resistance with support at 153.25

Dow (DIA)  264.70 next support or the 50-DMA. 

Nasdaq (QQQ) 186.50 the 50 DMA support with resistance at 193.05 

KRE (Regional Banks)  Broke54.62 the key support for this week-unconfirmed bearish phase. 

SMH (Semiconductors) Resistance at 119. Support at 109.30

IYT (Transportation) Nasty reversal, back under the 50-WMA at 188 now super pivotal.

IBB (Biotechnology) 105.56 the 50-DMA pivotal.

XRT (Retail) Unconfirmed bearish phase-42.10 resistance with 40.00 support.

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.