With the Russell 2000 breaking out over the 50 and 200-week moving averages, the market does look like blue skies, right?

Retail XRT ran to just over $50.00

Sister Semiconductors SMH rocked to another new all-time high.

Transportation IYT passed the critical test at the 200-WMA.

Biotechnology IBB consolidates over the 5-year breakout.

But our Prodigal Son Regional Banks?

Well, perhaps not all is lost

Regional Banks KRE is in a bearish phase.

The sector is having 2 inside weeks.

(Click on image to enlarge)

And that makes it easy.

A move/hold over 38.70 should be followed for a possible run up as shorts are plentiful.

It could also mean that the sector believes there will be a stimulus package passed.

A move/hold below 36.80, and regardless of the lofty prices elsewhere, I would take that as fair warning.

S&P 500 (SPY) 325.50 now pivotal support 332.58 a must gap to fill

Russell 2000 (IWM) 149 key support and took out June 8th highs.

Dow (DIA) 270 now pivotal

Nasdaq (QQQ) Another low volume day so 270 key

KRE (Regional Banks) See commentary

SMH (Semiconductors) 165-168 pivotal support as it is over an ascending channel

IYT (Transportation) 179-180 now key support

IBB (Biotechnology) 142 resistance 136 support

XRT (Retail) 50.00 now pivotal

Volatility Index (VXX) Inverted hammer doji-that’s a head’s up

Junk Bonds (JNK) 105.30 key support

LQD (iShs iBoxx High yield Bonds) 137.75 support to hold