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Key Support Levels That Need To Hold

By Michele SchneiderStock MarketsApr 20, 2021 12:17AM ET
Key Support Levels That Need To Hold
By Michele Schneider   |  Apr 20, 2021 12:17AM ET
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Although every member of the Economic Modern Family closed down on Monday, none broke their major support areas.

Here is a quick rundown of where each member’s closest support level is.

Indices Daily Charts
Indices Daily Charts

First, we have the Russell 2000 IWM) with support from the low of its current range at $218.83. This low was created on Apr. 13.

The transportation sector—iShares Transportation Average ETF (NYSE:IYT)—has support at $255.39 from Mar. 22. The prior high now serves as a minor support level.

Retail—SPDR® S&P Retail ETF (NYSE:XRT), Semiconductors—VanEck Vectors Semiconductor ETF (NYSE:SMH), and Regional Banks—SPDR® S&P Regional Banking ETF (NYSE:KRE)—all have support from their 50-day moving averages.

XRT at $86.29, SMH at $242.18, and KRE $66.07.

One thing to note is how the banking and retail sectors have not closed underneath their 50-DMAs this year, which makes the price level of their moving averages more meaningful.

The Biotech sector—iShares Nasdaq Biotechnology ETF (NASDAQ:IBB)—has tested support from the 200-DMA multiple times giving it a stronger support level at 145.94.

These 5 key sectors and 1 Index create the Economic Modern Family, which was created to boil down the overall market picture.

Additionally, by keeping track of their pivotal price levels, we can better time our trade entries and identify which sectors are leading or causing strain on the market.

ETF Summary

  • S&P 500 (SPY) Support 411.70 the 10-DMA.
  • Russell 2000 (IWM) 218.83 support. Resistance 226.69.
  • Dow (DIA) 337.67 support the 10-DMA.
  • NASDAQ (QQQ338.19 needs to hold as support.
  • KRE (Regional Banks) Support 66.07 the 50-DMA. Resistance 68.35.
  • SMH (Semiconductors) Support 242.18.
  • IYT (Transportation) 255.39 support.
  • IBB (Biotechnology) 145.94 support. Resistance 156.
  • XRT (Retail) Needs to clear 93 then 96.27.
  • Volatility Index (VXXCould not clear 10.24 the 10-DMA.
  • Junk Bonds (JNK)  Doji day. 108.60 support.
  • XLU (Utilities) Holding near highs.
  • SLV (Silver) 24.18 resistance.
  • VBK (Small Cap Growth ETF) Failed to hold the 50-DMA. 276.94 next support.
  • UGA (US Gas Fund) Minor support 32.66.
  • TLT (iShares 20+ Year Treasuries) 139.92 resistance area.
  • USD (Dollar) No close support area. Needs to get back over 91.60.
  • MJ (Alternative Harvest ETF) Pivotal area.
  • LIT (Lithium) Watching for second close over the 50-DMA at 62.09.
Key Support Levels That Need To Hold

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Key Support Levels That Need To Hold

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