Economic Modern Family Has Divisive Weekly Charts
Over the weekend, I covered the daily charts on the Economic Modern Family, featuring the Russell 2000 (IWM) and Retail (XRT). Both are lagging the benchmark and in the middle of their January trend calendar ranges.
As Semiconductors, NASDAQ, the Dow, and S&P 500 continue to post new all-time highs and clear the January trend highs, I keep looking for evidence that the rest of the Family will either soon follow or anchor. Hence, I turn to the weekly charts. Only Semiconductors (SMH) and Transportation (IYT) are in weekly bullish phases (when the blue 50-WMA is above the green 200-DMA along with price). While SMH is off to new highs, IYT has a distance to go even in its bullish phase.
What about the rest of the Family? The good news is that none are in bearish phases. Regional Banks (KRE) and Biotechnology (IBB) are into resistance and in recovery phases as both are priced below the 200-WMA. Plus, the 50-WMA is below, rather than above, the 200-WMA. As KRE and IBB are in the weakest weekly phases, both areas are vulnerable to a sell-off.
Retail (XRT) sits right on the 200-WMA and is in a weekly accumulation phase. I believe that the Retail sector is the key to what happens next, given:
The widening ratio between the price of growth and family sectorsEarnings of big techFed meeting end of the month and interest rate policyInflation numbers, particularly the price of food
The consumer sector has been in the game, but now shows some signs of fatigue. XRT will tell us what comes next.
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January 22: Your Daily Five, StockCharts TV & Schwab Network
January 24: Yahoo! Finance
January 25: Live Coaching
February 2: Money Show Life with Chuck Jaffe
Weekly: Business First AM, CMC Markets
S&P 500 (SPY): 480 now the pivotal zone.Russell 2000 (IWM): 195 pivotal, 190 support to hold.Dow (DIA): 375 support.Nasdaq (QQQ): 408-409 support.Regional Banks (KRE): Back over 50, which needs to hold.Semiconductors (SMH): 184 support.Transportation (IYT): 254 support with 262 resistance.Biotechnology (IBB): 135 pivotal.Retail (XRT): Held support at 65 but still needs to get back over 70.00.
Director of Trading Research and Education