Decoding the Economic Modern Family’s Message
After a week of fluctuating trends in China, rallying metals, and fluctuating yields, what is the economic modern family saying? Let’s analyze the weekly charts to uncover insights and potential opportunities.
Granny Retail and Granddad
- Granny Retail showed an inside trading week, maintaining its channel.
- Granddad also had an inside trading week, hinting at a potential upcoming move.
- The longer the trading range holds, the more significant the potential move when it finally occurs.
Brother Biotechnology and Sister Semiconductors
- Brother Biotechnology sits at the top of the 2024 range, signaling a potential breakout.
- Sister Semiconductors outperformed last week, but remains in the middle of its range.
- A pause in the action for these members indicates exciting opportunities when they start moving.
Long Bonds and Transportation
- A rally in long bonds could impact the dollar, equities, emerging markets, and commodities.
- Keep an eye on the performance of TLT versus SPY and the bullish divergence in the momentum indicator.
- Transportation closed higher on the week, showing potential leadership in the market.
Bitcoin and Regional Banks
- Bitcoin is on the verge of breaking above 65,000, watch for its performance compared to other assets.
- Regional Banks are still within the trading range, with the 200-WMA acting as a resistance level.
- The entire family is currently meandering with no clear direction since July, emphasizing the importance of monitoring long bonds for potential market shifts.
ETF Summary
- S&P 500 (SPY): 565 pivotal support level.
- Russell 2000 (IWM): Range between 215-225.
- Dow (DIA): Achieved new all-time highs.
- Nasdaq (QQQ): 485 pivotal level.
- Regional banks (KRE): Support zone between 52-55.
- Semiconductors (SMH): 240 pivotal level.
- Transportation (IYT): Support at 67.00, resistance at 69.
- Biotechnology (IBB): Support zone between 140-142.
- Retail (XRT): 77 pivotal level.
- iShares iBoxx Hi Yd Cor Bond ETF (HYG): Trading above the 200-WMA, indicating a healthy trend.
By analyzing the economic modern family’s performance and potential market movements, investors can make informed decisions and capitalize on emerging opportunities. Stay vigilant, be prepared, and keep a close watch on the key indicators and support/resistance levels mentioned above to navigate the dynamic financial landscape effectively.