Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Can The Small Cap Index And The Transportation Sector Hold Key Support?

By Michele SchneiderStock MarketsJun 06, 2021 04:06AM ET
www.investing.com/analysis/can-the-small-cap-index-and-the-transportation-sector-hold-key-support-200584417
Can The Small Cap Index And The Transportation Sector Hold Key Support?
By Michele Schneider   |  Jun 06, 2021 04:06AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

For the small-cap Russell 2000 iShares Russell 2000 ETF (NYSE:IWM), $226.69 is an important level to hold as it shows the index can sustain itself over its main consolidation range dating back to early April.

On the other hand, the Transportation sector—iShares Transportation Average ETF (NYSE:IYT)—along with Retail—SPDR® S&P Retail ETF (NYSE:XRT)—are not far from their 50-Day moving average.

IYT-IWM-Daily Chart
IYT-IWM-Daily Chart

This shows a potential divergence in the market if IYT and XRT decide to break their major moving average while the small-cap index holds or pushes higher.

Because IYT acts as an indicator for the underlying movement of goods, we can watch it for early warning signs that the market momentum is waning or speeding up.

However, with another 559,000 jobs added in May compared to the 278,000 in April, the economy could see an increase in demand for goods.

Furthermore, from the fundamental side, this could lead us to think that transportation might have another surge of support as we head into the second half of the year.

From the technical side, price action is always king, and therefore we should watch for $226 area to hold in IWM as well the 50-DMA to hold for both IYT and XRT.

ETF Summary

  • S&P 500 (SPY) Resistance 422.82 to clear.
  • Russell 2000 (IWM) 226.69 support area.
  • Dow (DIA) 348.65 then 351 high to clear.
  • NASDAQ (QQQ) Next resistance 336.65 with 331 support.
  • KRE (Regional Banks) Holding 70.00 with 71.82 resistance.
  • SMH (Semiconductors) 244 support.
  • IYT (Transportation) 267.65 the 50-DMA.
  • IBB (Biotechnology) 154 next resistance area.
  • XRT (Retail) 96.16 resistance.
  • Volatility Index (VXXNeeds to clear over 33.66.
  • Junk Bonds (JNKWatching to clear 109.12.
  • XLU (Utilities) Support 64.49.
  • SLV (Silver) 25.89 gap to fill.
  • VBK (Small Cap Growth ETF) 278.97 level to clear.
  • UGA (US Gas Fund) Needs to hold over 34.75 area.
  • TLT (iShares 20+ Year Treasuries) 140.60 next level to clear.
  • USD (Dollar) 89.54 support.
  • MJ (Alternative Harvest ETF) Could not hold the 50-DMA at 21.16.
  • LIT (Lithium) 69.75 next level to clear.
  • XOP (Oil and Gas Exploration) 92.24 now support.
  • DBA (Agriculture) 18.73 needs to hold as new support.
  • GLD (Gold Trust) 177.97 gap to fill.
Can The Small Cap Index And The Transportation Sector Hold Key Support?
 

Related Articles

Can The Small Cap Index And The Transportation Sector Hold Key Support?

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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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.
Comments (2)
Aamir Nizar
Aamir Nizar Jun 07, 2021 8:27AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello
Igwe Victor
Igwe Victor Jun 06, 2021 5:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
or
Sign up with Email