What Stock Market Sectors are Waiting to Breakdance?

Michele Schneider

Today we use a breakdancing analogy to highlight stock market sectors on the verge…

Breakdancing mainly consists of four kinds of movement: toprockdownrockpower moves and freezes.

Toprock movement is done from a standing position. Downrock movement is done from the floor. Power moves rely on speed, momentum and acrobatics. Freeze movement is no movement at all. All motion is halted.

With so many stock market sectors exploding to the upside already, what is left to toprock, downrock, power or freeze?

The stock market sector that could toprock as it is already in a standing position is the Regional Banks ETF NYSEARCE: KRE

We start off the week trading within the trading range of last week. With bank earnings on tap, I’d watch KRE to take out 57.75.

stock market investors dancing

If downrock is movement done from the floor, that would be the Retail Sector ETF NYSEARCA: XRT

After last week’s doji candle (the opening and closing price for the week was the same (45.08-45.10), this week, to go from a downrock to an uprock, retail stocks want XRT to clear/close over 45.50 as a start.

The Transportation Sector ETF BATS: IYT is most likely to power move (as long as the market holds).

Also starting out with an inside trading week, through 198.45 and after weeks of consolidation above 190.00, IYT could gain speed and momentum.

Freeze movement or no movement at all, could belong to the Biotechnology Sector ETF NASDAQ: IBB

As the first of the Economic Modern Family members to breakout back in early October, it is possible that this week, IBB halts from selling off, but also continues to trade as if frozen at current levels.

With the Vice Premier of China in the US ahead of the planned Phase One Trade Deal signing, that could be just the breakbeat these sectors need to breakdance.

S&P 500 (SPY) closed at a new all-time high. 324.10 is price support.

Russell 2000 (IWM) 165.35 is a pivotal price level.

Dow Jones Industrials (DIA) had an inside day. 287.15 is price support to hold.

Nasdaq (QQQ) closed at a new all-time high. 216.15 is the price support to hold.

KRE (Regional Banks) is holding the 50 day moving average around 57.00

SMH (Semiconductors) had an inside day. 142.95 is the price support to hold.

IYT (Transportation) 195 is pivotal price support, while 200 is key resistance. 

IBB (Biotechnology) 121.91 is price resistance and 115.50 is support.

XRT (Retail) 45.50-46.00 is pivotal price resistance. 44.78 is the 50-day moving average.

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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.