A Gordian Knot comes from Greece during Alexander the Great’s march.It has become a metaphor for a problem solvable only by bold action.Every investor is waiting for the next stat and the next stat.
Each one is perceived as the key to what the Fed will do next.And that the market action/reaction will be bold.Will the market head to new highs as we are seeing in certain areas?Or will the weaker sectors/indexes drag down the mighty?
-We already know what a Fed long pause looks like.
-Until something unties the knot, the market continues to cautiously hold up on low volume, wonky breadth with a huge divergence between small caps and growth stocks.And then there are the commodities.
ETF SummaryS&P 500 (SPY) New all-time highRussell 2000 (IWM) 210.80 resistance 200 support with a historical wide ratio between this and NASDAQDow (DIA) 40k resistanceNasdaq (QQQ) New all-time highRegional banks (KRE) Watching the range 45-50Semiconductors (SMH) 450 major support and another new all-time highTransportation (IYT) 63.80 area now important support with 66-67 the area to clear for healthBiotechnology (IBB) 135 support 140 resistance-big eyes here this weekRetail (XRT) 75-80 trading range to breakiShares iBoxx Hi Yd Cor Bond ETF (HYG) Ended the week on critical support 76.85 area – so watch carefully this coming weekMore By This Author:One Stock Doing The Heavy Lifting! Interest Rates Head Higher On Friday.
Precious Metals-Has Anything Really Changed?
Start Of A Market Correction Or A Summer Rally?
