Which Sectors Are At Risk Of Succumbing To The Bears?
Michele Schneider | Feb 23, 2020 05:29AM ET
What equity Bulls need to examine for the coming week, is whether the Bear hunts them down in public places or if any invitation they give to a Bear to enter their home, is so easily rescinded.
The Economic Modern Family’s home could be under siege.
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Are they about to fall under our bear’s spell yet again?
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Here are the weekly charts of the Economic Modern Family:
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Imagine if you will, a bear knocking at the door of each of the six squares.
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Now, let’s think about how much risk each member is in should they invite the bear in.
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Top left is our superstar Sister Semiconductors SMH. Interestingly, she had an inside week or traded within the range of the prior week. That means the bear is at the door, but not quite inside her living room.
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Should SMH break under 142.50, she’ll succumb to the bears.
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Middle top is Big Brother Biotechnology IBB. Clearly, this has had a relatively strong performance this week. Under 119.80 IBB is at risk.
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Far right top is Granny Retail XRT. She did well this week comparatively. Although the December 2019 highs of 46.57 elude her if she holds over 44.00.
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Bottom left is Transportation IYT. On the Daily chart, IYT had to hold the 50-DMA at 195.92. IYT closed one cent below.
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On the weekly chart, although he looks a bit broken down, he has room to fall before his life is at risk.
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Bottom middle is Prodigal Son Regional Banks KRE. Unless he breaks 54.00, the weekly bull trend is intact.
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And far right bottom is Granddad Russell 2000 IWM. 165.80 is the 50-DMA which he held. On the weekly chart, with the close over 167, he not only keeps the bears outside his portal, he is the best one to protect everyone else should he remain above 167.
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For now, with all the indices in positive phases and most of the sectors as well, our bear hovers patiently by the door because of what the low yields, high gold prices and growing volatility suggest to him-easy pickings.
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S&P 500 (SPY) Failed the 10-DMA which makes 336 the resistance to clear and 330 support.
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Russell 2000 (IWM) 165.80 support, 167 pivotal and 169.50 resistance
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Dow (DIA) Closed right below the 10-DMA at 293.60-now pivotal
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Nasdaq (QQQ) Fell to the 50 DMA and held 288.20 now support to hold
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KRE (Regional Banks) 56 resistance and 54.05 support
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SMH (Semiconductors) 144 the support to hold and 148.75 resistance
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IYT (Transportation) 195.92 pivotal for Monday
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IBB (Biotechnology) Inside day. 121.29-123.65 range to break
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XRT (Retail) Inside day. 45.12-46.24 range to break
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Volatility Index (VXX) Unconfirmed Recuperation phase making 14.66 pivotal
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