Wednesday’s Key Price Levels for Stock Market and Sector ETFs

Michele Schneider

In my weekend commentary, I stated the following:

“In the current market, the price action and negative phases in the indices hang precariously.”

“For this week, take heed on the negative phases and the waning weekly charts. Unless that changes, this is a sell rallies market, except for a few stocks trading on their own fumes.

These ETF charts (the Economic Modern Family) look like the underpinnings of a recessionary period coming to the U.S. If that is the case, we wonder how much the Federal Reserve can do.”

As we begin the week, yields fell further, the metals (gold, silver, platinum) rallied more, USCI-the feature of a Daily last week, gained.

Equities struggled. 

Key stock market ETFs with price levels and analysis:

S&P 500 (SPY)  290 held. A gap below today’s low or 289.27 should bring in a lot more sellers. Then, we are looking at next support closer to 280. Keep 290 as the key pivotal area and if this can rally, a place holder for stops. 

Russell 2000 (IWM)  148.00 the pivotal support failed. A move back above is positive. However, if this fails to hold above 148, we are looking at 140.50

Dow Jones Industrials (DIA)  260 now key support. Strongest sector today. Below 260 trouble.

Nasdaq (QQQ)  2 inside weeks now into the 3rdinside week. That makes last week’s range super important.  Above 188.97 stronger and below 182.91 weaker. I’d follow the range break either way.

KRE (Regional Banks)  Broke 49.50. 47.98 some support but under that, can see a move to 46.50 quickly. 

SMH (Semiconductors)  This broke below the 50-DMA making that key to get back above or around 112.70-113.20. Otherwise, we are looking at 107 next.

IYT (Transportation)  Really tried to hold 179.50. By the close, it did. If holds above 179.50 this will need to clear back over 182 next. Another break means a move under 175 should send this to 170 area. 

IBB (Biotechnology)  The 200 WMA at 102.71 pivotal area failed today. 97 major support unless this gets back over that 200-WMA.

XRT (Retail)  This has multiple bottoms around 38. But without a move back over 40, not much happiness here.

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