Perhaps you came to the market this morning all dressed up and rearing to go.
By the end of the session, ahead of earnings on many significant stocks (NFLX numero uno), you might have left like this bulldog of the dead.
Last week, the market ended poised for something big and bigger.
The Dow, S&P 500 and the Transportation Sector made new all-time highs.
Instead of a woof though, the market began with a whimper.
Both the Dow and the S&P 500 had quiet trading ranges inside the more broader range we saw Friday.
If you are like me, you are anticipating a dramatic start of a new leg up. Or evidence of a dramatic finish.
Instead, the market gave us skeletal bulldogs.
The Russell 2000, of the four indices, had the best performance.
We wait for IWM to either gap up above 143 and not look back.
Or gap lower and break under 138.00
Biotechnology (IBB) traded right into resistance. At the end of the session, IBB failed to take out 320 yet held well above critical support.
Regional Banks, after the soft revs in big banks, gained back a smidgeon.
Resuscitation (Annie) Granny Retail (XRT) turned out the star of the Family.
XRT cleared and held 40.00. However, hurdles exist to get Granny back into a Recovery Phase.
The Transportation ETF (IYT) closed red. It can still open above 175.75 and run. Or, sellers could come out and take IYT down to 172.
In between support and resistance, your P&L can wind up in the bulldog’s sizeable fangs.
We do not want to see you lament, “My bulldog ate my profits.”
S&P 500 (SPY) 245 now pivotal. Since inside day at new all-time highs, would take a runaway gap here.
Russell 2000 (IWM) I’d still consider the channel resistance at 142.90 as the number to watch. A gap and run above-sweet! 140 pivotal. 138.00 support
Dow (DIA) 214 pivotal support. Quiet inside day.
Nasdaq (QQQ) 142 pivotal. Over 144, blast off.
KRE (Regional Banks) Must hold 54.10 clear 56.50 once and for all
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