The market got a little spooked today.
Congress is back in session.
Cause and effect?
Maybe, because pretty soon hopes of what might be accomplished in by Washington will be met with reality.
However, here’s what I’m focussed on.
Bonds (TLT) rallied 1.59% which is the biggest 1 day percentage move since June of 2016. Granted there were 2 other 1.5%+ moves in 2017, but this is still a very notable move.
The TLT move may have been enhanced by the weekness in stocks, but its rise is also likely due to an increasing belief that interest rates will stay lower for longer.
A lower for longer sentiment for interest rates is not what banks want, and thus, KRE also had an unusually large day. However, KRE’s move was down and breaking a very significant support level.
The moves in KRE and TLT paint a bearish picture, however the market leaders may have been shaken up, but they were not broken.
As you’ll read in the more detailed ETF analysis below, there were plenty of interesting areas of strength and support.
Statistically September is the weakest month of the year. This doesn’t mean it has to go down, but we should be prepared for a bumpy ride.
As of right now the Modern Family is mixed, but trying to support one another.
S&P 500 (SPY) Stopped at the 50-DMA. Look for support at 244.60. Resistance at 247.60 and then needs to close well over 248 to get going, and watch the all-time high of 248.91.
Russell 2000 (IWM) Closed back under the 50-DMA. Warning Phase. Today’s low is important support to hold and then 137.25 and 136.25. Resistance at 139.70 and then 141 and 142.30.
Dow (DIA). Stopped at the 50-DMA. Support at today’s low then 216.60 and 215.70. Resistance at 219, 219.50 and then 220.
Nasdaq (QQQ) Stopped at 10-DMA.. Look for support around 143.60 and 142. Resistance is at 145.50, 146 and then the highs at 146.60.
KRE (Regional Banks) Major breakdown closing under 51. Negative until closes over 52. Maybe support at 50?
