As the media focuses on a worsening situation with a new variant of the virus, Mish's Economic Modern Family shows that not all is doom and gloom.
Grandad Russell 2000 (IWM) is sitting right under all-time highs of 197.83. The small cap sector continues to shine as other major indices took a breather yesterday.
Both the S&P 500 and the Dow Jones (DIA) had an inside day, while the Nasdaq 100 (QQQ) closed at 309.76 just over Monday's high of 309.47.
Going back to the Family, the transportation sector (IYT) is hanging in there as it holds over 218.38, the low of 12/14.
It if broke down further it would then have major support from the 50-day moving average to get through at 214.15.
Granny Retail (NYSE:XRT) is fed up with the drama as she takes the lead with a gap up this morning followed by new all-time highs.
Then we have the regional banks sector (KRE) slumping as yesterday if failed to break through the 10-DMA.
Monday's low of 49.68 could end up being a pivotal level for KRE to hold as support from the major moving averages is still far off.
With the Fed’s lift of buyback restrictions, banks now have the ability to purchase their own shares.
This could be the boost it needs to get it through its next major resistance at 52.66 the 200 week moving average.
The Biotech sector (IBB) continues with upward momentum with AstraZeneca (NASDAQ:AZN) claiming their vaccine should be effective against the new Covid strain. Furthermore, Pfizer (NYSE:PFE) announced a rollout of tens of millions of vaccines coming available.
Sister Semiconductors (SMH) currently sits at 214.19, between 210.41 support and 221.79 resistance.
The rotation remains obvious with small caps, retail leading, trans trying to decide, and semi’s feeling heavy.
We expect a very quiet market for the rest of this holiday week.
S&P 500 (SPY) Support 363.26 With 10-DMA to clear at 368.09
Russell 2000 (IWM) 197.83 high to clear.
Dow (DIA) 301.38 10-DMA to clear. 297.42 support.
Nasdaq (QQQ) Bounced off the 10-DMA with 312 high to clear.
KRE (Regional Banks) Resistance 200 week moving average 52.66 to clear. Want to see 49.68 hold as support.
SMH (Semiconductors) 221.79 high to clear. Support 210.41
IYT (Transportation) Looking for a close over the 10-DMA 221.89 Support 214.15
IBB (Biotechnology) 153.12 support.
XRT (Retail) All time highs.