Taking A Temperature Check On The Major Sector ETFs

(Click on image to enlarge)

written by Forrest Crist-Ruiz. Assistant Dir of Trading Education and Research

With the SPY, QQQ, DIA, and IWM, closing down on the day, now it’s a good time to check the health of the Modern Family to give us a bigger picture of the market.

Above you can see the weekly charts for Modern Family. (IWM, IYT, XRT, KRE, IBB, SMH) All keys to the larger picture.

Let’s begin with Grandpa Russel (IWM) showing us the small cap stocks.

A second touch and pullback from the 200-WMA gives a clear support level of 149 with the 50-WMA close behind.

Last week (IYT) Transportation came 3 cents away from the high of Jan 17th. 203.89. We are currently having an inside week. This could give it the consolidation to push through that clear resistance level. Support from the rest of family and the government would be key.

(XRT) Granny Retail is also having an inside week. Unemployment benefits are still under negotiation which could play a large supporting factor for Granny retail who has paused for the time being.

(KRE) Prodigal Son Regional Banks has yet to pull closer to any of the moving averages being the weakest of the bunch.

(IBB) Big Brother Biotech Is currently sitting close to major support at 124. That is the 50-WMA which with its rising slope could meet IBBs price.

(SMH) Sister Semiconductors has been through a great run, but without any major support nearby and last weeks high being at 184, she will need to pull things together to make another move higher. She's also not in an inside week, which means holding above last weeks low of 165.50 could be a very important level.

Waiting for the confirmation of good news with an end to stimulus negotiations could be a key here. IYT, IBB, and XRT are having inside weeks. IWM is sitting on major support while SMH is holding over last week's low. Besides KRE, everyone else is hanging in there.

S&P 500 (SPY) 332.88 support

Russell 2000 (IWM) Next Support 149. Watching for confirm under 50-DMA

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