The market stopped the bleeding with a rally into Friday’s close.
The small caps index Russell 2000 (IWM) held over its 50-day moving average of 213.40. Additionally, the retail (XRT) and transportation (IYT) sectors never broke under their 50-DMAs, with IYT going on to clear its prior days high.
This is key, as both sectors are closely tied to the economic recovery. If they continue their upward trend, this will show that investors are expecting brick-and-mortar stores to increase sales along with a push for more travel. Texas is especially ready for its economy to return to normal with its recent mask mandate lift.
Friday’s jobs report also gave a boost by showing a gain of 379,000 payrolls in February.
Currently, all the major indices are holding up except the tech heavy index, Nasdaq 100 (QQQ). The QQQs, along with the VanEck Vectors Semiconductor ETF (NYSE:SMH) have taken a hit but could make a rebound if Friday’s rally carries over into Monday.
In recent months, we have seen sectors and indices dip under support from the 50-DMA only to clear back over and continue higher. Therefore, if Monday’s price action continues upwards, watch for SMH and QQQ to follow or consolidate. On the other hand, if Monday’s price action takes a turn lower, watch IYT along with XRT to hold support of their 50-DMA.
- S&P 500 (SPY) Like this to stay over the 50-DMA at 381.17.
- Russell 2000 (IWM) Holding over the 50-DMA at 213.40.
- Dow (DIA) Cleared the 10-DMA at 314.11.
- NASDAQ (QQQ) Held support of 297.46 almost perfectly.
- KRE (Regional Banks) Holding the 10-DMA at 66.05.
- SMH (Semiconductors) Watching to clear 50-DMA at 235.06.
- IYT (Transportation) Highs 241.36 to clear.
- IBB (Biotechnology) Briefly touched main support of the 200-DMA at 143.25.
- XRT (Retail) 85.69 resistance. 75.05 support.
- Volatility Index (VXX) Can’t break the 50-DMA 16.77.
- Junk Bonds (JNK) Inside day.
- LQD (iShares iBoxx $ Investment Grade Corp Bond ETF) Could not hold recent support.
- IYR (Real Estate) Held 84 support. Resistance 86.96.
- XLU (Utilities) 60.32 next resistance level.
- GLD (Gold Trust) Inside day.
- SLV (Silver) 22.94 support.
- VBK (Small Cap Growth ETF) Needs to clear and hold 270.
- UGA (US Gas Fund) New high.
- TLT (iShares 20+ Year Treasuries) 136.61 recent low.
- USD (Dollar) 91.60 new support.
- EZA (South Africa) Inside day. 49.55 resistance.
- MJ (Alternative Harvest ETF) Needs to hold over 20.60.
- WEAT (Teucrium Wheat Fund) Like this back over the 10-DMA at 6.35.