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Why Tuesday Is Pivotal For The Market

By Michele SchneiderStock MarketsMay 18, 2021 12:16AM ET
Why Tuesday Is Pivotal For The Market
By Michele Schneider   |  May 18, 2021 12:16AM ET
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Last Friday the market closed on a high note with a rally off the lows of 05/12.

This was a bullish sign, yet the rally also pushed prices into a resistance area.

QQQ-IWM Daily Chart
QQQ-IWM Daily Chart

The mixed sentiment from traders could be seen in Monday’s major indices with an inside day pattern found in the Russell 2000 (IWM) and the S&P 500 (SPY).

An inside day pattern is created when the total range of a price candle fits within the prior days' range.

This creates an easy way to watch for either a breakout or breakdown based on resistance/support from the prior days high/low.

However, a clean break over Friday’s high brings the market back into a choppy area, while a drop past Friday's lows would have investors looking towards the next key support area to hold from 05/12.

Additionally, the NASDAQ 100 (QQQ) had resistance not only from Friday’s highs but also from the 50-Day moving average found at $326.84.

As seen in the charts above, this gives us key levels to watch for a break over with a clean support area to hold if bullish sentiment prevails.

ETF Summary

  • S&P 500 (SPY) Held the 10-DMA at 415.25.
  • Russell 2000 (IWM) Support 215. Resistance 223.17.
  • Dow (DIA) Like this to hold over 342.43.
  • NASDAQ (QQQ) 326 resistance.
  • KRE (Regional Banks) 71.82 resistance.
  • SMH (Semiconductors) 233 pivotal area.
  • IYT (Transportation) 282.40 resistance.
  • IBB (Biotechnology) 147.11 support.
  • XRT (Retail) 96.27 resistance.
  • Volatility Index (VXXFailed to break over Friday’s highs at 41.50.
  • Junk Bonds (JNK108.55 support the 50-DMA.
  • XLU (Utilities) Next support the 50-DMA at 64.68.
  • SLV (Silver) Needs to clear 26.28.
  • VBK (Small Cap Growth ETF) 258.32 support with main support the 200-DMA at 254.10.
  • UGA (US Gas Fund) 34.68 resistance area.
  • TLT (iShares 20+ Year Treasuries) 135.00 support area.
  • USD (Dollar) Watching to hold 90.00.
  • MJ (Alternative Harvest ETF) Watching to hold over 19.83.
  • LIT (Lithium) 60.31 the 50-DMA.
  • XOP (Oil and Gas Exploration) 92.24 resistance.
  • DBA (Agriculture) 18.17 next support
Why Tuesday Is Pivotal For The Market

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Why Tuesday Is Pivotal For The Market

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