Just look at the March lows in Granddad Russell 2000 (IWM).
Now look at the March lows in Granny Retail (XRT).
So who is right?
IWM has moved up since the March lows and takes the lead as it starts the week.
IWM cleared the 50-DMA in price and is now in the recuperation phase.
Our proprietary indicator lets you see hidden strengths or weaknesses during market trends; right now is as interesting as the diversion in price between Gramps and Granny.
IWM’s momentum indicator cleared the 50 and 200-DMAs changing phase to accumulation.
That is a bullish diversion for IWM as the price is still under the 200-DMA.
Granny XRT, on the other hand, shows momentum declining and below both moving averages.
However, it could be a mean reversion forming. Or at least we hope so.
Granny’s price sits at the March lows and at the 6-month calendar range low.
She must get game, or I would assume, like her grandson Regional Banking ETF (NYSE:KRE), she is flashing a huge warning.
ETF Summary
- S&P 500 (SPY) 23-month MA 420 Support 415
- Russell 2000 (IWM) 170 support - 180 resistance
- Dow (DIA) 336, the 23-month MA
- Nasdaq (QQQ) 336 cleared or the 23-month MA-now it's all about staying above
- Regional banks (KRE) 42 now pivotal resistance-37 support
- Semiconductors (SMH) 23-month MA at 124 now more in the rear-view mirror
- Transportation (IYT) 202-240 biggest range to watch
- Biotechnology (IBB) 121-135 range to watch from monthly charts
- Retail (XRT) This could be the new harbinger like KRE was in March. Poor Granny