U.S. Stock Market Feels Like Summer, Looks Like Winter

Michele Schneider

The juxtaposition of snow today seems incongruous compared to the hot stock market.

The east coast USA, and in the last couple of days the southwest, have had unseasonably warm days.

The warmer days along with the climbing stock market felt right.

However today, with another round of new all-time highs, when I stepped outside to snap the photo, I got a chill.

Is there a metaphor here between the wintry weather reminder and the overly complacent bulls in the stock market?

Last night, the Regional Banks KRE stood as a potential icy tale.

stock market winter image bearish

It had failed the 50-DMA for the first time in months. However, we always note that, the phase change needs two days to confirm.

I further stated that, …”unless KRE can close back above 57.05, it probably means it’s selling time again.”

Today, KRE climbed back over the 50-DMA for a now unconfirmed return to a bullish phase.

Again, we need a second day to confirm, which makes Friday key for that sector and quite possibly for the entire market.

If KRE closes confirmed bullish, despite the wintry chill, you keep your Hawaiian shirts on.

A close below 57.08, and bulls should pull out their down coats.

Here are the trading levels for tomorrow (Friday):

S&P 500 (SPY) another new all-time high. 326 is price support.

Russell 2000 (IWM) made a new January high and now 166 price is pivotal.

Dow Jones Industrial Average (DIA) made a new all-time high and bulls want 288.57 the to hold.

Nasdaq (QQQ) made a new all-time high. 218.32 is price support to hold.

KRE (Regional Banks) 57.08 is pivotal price area.

SMH (Semiconductors) 143.50 is super pivotal price area for Friday.

IYT (Transportation) 200 is price support. IYT reached our first target… and if it clears 204, it could see a move up to 208.

IBB (Biotechnology) 120.25 is price support.

XRT (Retail) 45.50-46.00 is pivotal price area.

Volatility Index ETF (VXX) Threw this one in today as a bonus-broke the January seasonal low and then closed back above it. Down coat?

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.