Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

All Eyes On The 50-Day Moving Average

By Michele SchneiderStock MarketsMay 19, 2021 12:38AM ET
All Eyes On The 50-Day Moving Average
By Michele Schneider   |  May 19, 2021 12:38AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

The Russell 2000 (IWM) and NASDAQ 100 (QQQ) have yet to clear over their 50-Day Moving Average which has created a pivotal and psychological resistance level that bulls are looking to clear.

QQQ-IWM Daily Chart
QQQ-IWM Daily Chart

Additionally, other key sectors and indices have been holding their breath in anticipation of a break over these specific price points.

The S&P 500 (SPY) and the Dow Jones (DIA) along with the Transportation (IYT) and Retail (XRT)) sectors closed Tuesday with relatively thin trading ranges when compared to last week's price action.

On top of that, the daily volume in these symbols has decreased from the bounce off the lows on May 12. This shows buyers and sellers are not fighting each other, and instead are trading with more caution and less size.

However, while weaker amounts of volume can be seen from a negative standpoint, the overall price is still holding, and sellers have not jumped in the mix.

Furthermore, if we look at the fear gauge or the iPath® Series B S&P 500® VIX Short-Term Futures™ ETN (NYSE:VXX), it is also experiencing consolidative price action.

Without a doubt, investors are still worried and are not completely convinced the market will successfully be able to clear key resistance and hold it.

This can make securities trading tough when the market is processing its next move.

On the other hand, due to increasing inflation, our commodities trades such as Gold (NYSE:GLD), Silver (NYSE:SLV), and Sugar (NYSE:CANE) have steadily moved higher without much hassle from the overall market.

This is because the commodities space still presents opportunities with inflation set to rise going into 2022+ and offers safety plays based on demand that is increasing now that the U.S is moving back towards pre-pandemic times.

ETF Summary

  • S&P 500 (SPY) If it cannot hold 410, then 406 is the next resistance.
  • Russell 2000 (IWM) Support 215. Resistance 223.19.
  • Dow (DIA) 345 support.
  • NASDAQ (QQQ) 327 resistance.
  • KRE (Regional Banks) 71.82 resistance.
  • SMH (Semiconductors) 233 pivotal area. 222.82 support.
  • IYT (Transportation) 282.40 resistance. 267.92 support.
  • IBB (Biotechnology) 147.11 support. Could not hold over the 50-DMA.
  • XRT (Retail) 96.27 resistance.
  • Volatility Index (VXX) 38.22 minor support.
  • Junk Bonds (JNK) Broke support from the 50-DMA at 108.57.
  • XLU (Utilities) 64.78 support.
  • SLV (Silver) Needs to clear 26.28 and hold.
  • VBK (Small Cap Growth ETF) 258.32 support with main support the 200-DMA at 254.38.
  • {{44901|UGA} (US Gas Fund) 34.68 resistance area.
  • TLT (iShares 20+ Year Treasuries) 136.37 the 200-week moving average.
  • USD (Dollar) Broke support at 90.00.
  • MJ (Alternative Harvest ETF) Watching to hold over 19.83.
  • LIT (Lithium) 60.43 support the 50-DMA.
  • XOP (Oil and Gas Exploration) 92.24 resistance.
  • DBA (Agriculture) 18.17 support.
All Eyes On The 50-Day Moving Average

Related Articles

All Eyes On The 50-Day Moving Average

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email