To repeat on the importance of the July (and January 6-month calendar ranges)The Six-Month Calendar Ranges
Overall, we look at 2 simple things.
Looking at IWM or the small caps, any question on whether this is the new kid (in our case new Granddad) in town, is answered.Holding above the July range (green horizontal line) is a positive.Of course, should the market fall further that could change.Nonetheless, if the market firms from here, IWM is a good place to go for more upside.On the flip side, and completely different from what we have seen for the last 2 years, our Sister Semiconductors SMH is having a hard time.
SMH not only failed to clear the July range high, but it also broke the low last week.Now, SMH is in an unconfirmed warning phase, trading under the 50-day moving average.The momentum or Real Motion indicator is pointing to oversold.Hence, we could see a bounce tomorrow perhaps back up towards the 50-DMA.But unless we see a real reversal with price back through the calendar range lows, we can assume that the trend is real.Money continues to rotate into small caps and out of Mega caps.
ETF SummaryS&P 500 (SPY) 540 supportRussell 2000 (IWM) 217 support 227 resistanceDow (DIA) 400 pivotalNasdaq (QQQ) Broke under the 50-DMA but some weekly support 463Regional banks (KRE) 54 now support with 60 next level to watchSemiconductors (SMH) Failed the 50-DMATransportation (IYT) 64.10 supportBiotechnology (IBB) 146 now pivotalRetail (XRT) 75 pivotaliShares iBoxx Hi Yd Cor Bond ETF (HYG) 78.00 supportMore By This Author:A Favorite Trade Setup – Symbotic
The Long Bonds Update
The Market Requires 7 Pairs Of Eyes!
