Retail Stocks, Chips: Weekly Price Consolidation to Spark Explosive Breakout?
Michele Schneider | Apr 09, 2024 02:20AM ET
I will keep showing these weekly charts up until and after these massive trading ranges reconcile up or down.
Will they all reconcile at one time?
Maybe but unlikely.
Will some remain rangebound?
For a time yes, but then gravity or FOMO will change that.
Are there sectors that are more important than others in the overall macro?
For sure.
Semiconductors SMH as the leader will be compelling over the range.
Just as Granny Retail as 70% of the GDP should XRT fail the range, be equally if not more compelling.
The bigger point is that we HAVE something tangible to watch.
Something, that speaks louder than any pundits’ words or “what if” speculations.
Consolidation is one of our favorite chart patterns, especially when prices are consolidating at new highs or lows.
The direction the price follows, up or down out of the consolidation can lead to explosive moves.
h2 ETF Summary/h2- S&P 500 (SPY) 520 now resistance
- Russell 2000 (IWM) 201 support
- Dow (DIA) 385 support 400 resistance
- Nasdaq (QQQ) 440 the pivotal area
- Regional banks (KRE) 45-50 range
- Semiconductors (SMH) 223 pivotal
- Transportation (IYT) 68 area support
- Biotechnology (IBB) 135 resistance
- Retail (XRT) 74.50 pivotal
- iShares iBoxx Hi Yd Cor Bond ETF (HYG) 76.50 support and back over 77 better
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