All this past week I have written about the inside weeks that up until Friday held as support.
Then, one by one, those lows were violated.
The first one to go was Regional Banks KRE.
Next came our “go to” Transportation IYT.
Friday, Granny Retail XRT and the Russell 2000 IWM followed in kind.
Only Biotechnology IBB and Semiconductors SMH held their last week’s lows.
Then, in the last 5 minutes of Friday’s session, buying came in.
That helped get the Russells to close a bit above the low from the week prior.
However, keep in mind that IWM has wiped out a year of gains in a couple of weeks.
Besides IBB and SMH as already mentioned, KRE, IYT and XRT broke and closed below the prior week’s low.
Some see what they want to see.
Oh sure, the S&P 500, Dow and NASDAQ not only held the prior week’s low, but actually made a higher low.
Yet, haven’t these swathed analysts learned that without the “inside”of the market on board, this end of day boost is as reliable as pretending to look at your cell phone with eyes covered?
If next week the market puts in an earnest bottom, which means a green day with volume, followed by another green day with volume and the Economic Modern Family ending its bleed, then maybe.
S&P 500 Inside week-Has to at least clear 302.50 and hold 285.54
Russell 2000 (IWM) Broke the inside week-Must clear 148 and hold 140.00
Dow (DIA) Inside week. Has to clear 266 at least and hold 247.
Nasdaq (QQQ) Inside week-Has to at least clear 213 and hold 198.13
KRE (Regional Banks) Broke the inside week. Here more than anywhere, we need to see some real bottoming action before getting excited.
SMH (Semiconductors) Inside week. Interesting. Must clear 135 and hold 125.00
IYT (Transportation) Broke the inside week. Has held 155.24 or the 2018 low thus far. Needs to clear 165 to get excited
IBB (Biotechnology) 120 pivotal with 117.50 key support
XRT (Retail) Broke the inside week. 39.16 pivotal and over 40.00 better.
Volatility Index (VXX) Gapped higher and held.
Junk Bonds (JNK) 104.78 low must hold and a move over 107 better