Today began on a down note presumably due to concern that comments President Trump made last night suggested that raising the debt ceiling may be at risk.

After the market opened lower it didn’t have any decisive follow through up or down.

After a strong day like yesterday, it’s nice to see follow through to confirm the bulls strength, and that was certainly lacking today.

As mentioned in yesterday’s commentary, the first key level to watch that would suggest that Tuesday’s up move was a one hit wonder, is Tuesday’s low. The stocks, and ETFs that are closing below that level are suspect.

While the general market action was quiet, and not worthy of much analysis, there are several area of the market that had interesting moves.

The most notable move today was the free fall in the IYT. Its 1.3% decline was not extraordinary in magnitude, but its close below key support is very bearish technically.

Looking under the hood of IYT, however, you’ll discover that its decline is a result of the airlines stock getting hammered. The railroads (i.e. NSC, KSU, UNP) and shippers (i.e. FDX, UPS) were weak, but remain in much better shape technically than the airlines.

The free fall in the airlines be seen by the airline ETF (JETS) illustrated below.

The transportation sector is considered a key market bellwether so its breakdown can be viewed as an ominous sign.

I would not dismiss the IYT breakdown completely, but until the shippers and rails follow the airlines lower, the IYT may not be as bearish for the whole market as it looks right now.

Other interesting areas of the market included…

The semis (SMH) which traded over Tuesday’s high suggesting tech is trying to resume its leadership role. Unfortunately, it was not strong enough to be convincing.

IBB, biotech also held up well today, consolidating near yesterday’s high.

Coal (KOL) broke over a key post-election resistance level. You can read more below.

Finally, GDX didn’t move at all, but that’s why it’s interesting. It now has 3 consecutive inside days. This suggests the next move outside of its compression should be worth following!

 S&P 500 (SPY) Support in 245-248.80 area. Resistance 246 and 246.50

Russell 2000 (IWM) Support at 135.75 and then 135.50 and 135. Expect resistance at 137.00-.20.

Dow (DIA). Sitting on support at 218. Gap fills at 217.  Expect resistance around Tuesday’s high, 218.85, then big resistance at 220.

Nasdaq (QQQ) Look for support around 142. Gap fills at 140.18. Resistance is at Tuesday’s high, 143.35 and 144.00-.40

KRE (Regional Banks) Support around 51.50. 54.00 is major resistance.

SMH (Semiconductors) Showed good relative strength today, but still range bound – 84 to 88. 85 is good support.

IYT (Transportation) Ugly day. New multi-month low and closing low. More weakness could lead to a big slide. Next big resistance is at 168.

IBB (Biotechnology) The big areas to watch are 300 below and 312 above

XRT (Retail) The 38 level should be support now. Needs to get over 39 for starters.

IYR (Real Estate) Nice up day but still stuck in a big range. Short-term key levels are 78.70 support and resistance at 81.

XLU (Utilities) Another new high. Support at 54.40 and 53.60.

GLD (Gold Trust) Key levels to break are 122.80 and 123.50. Over that it runs. Look for support at 120.50.

GDX (Gold Miners) 3 consecutive inside days. Key levels to break are 23.25 and 23.50. Look for support at 22.30-.50

SLV (Silver) 16.30 clears key high and the 200 DMA. 15.50 area is support.

USO (US Oil Fund) Tight consolidation continues. Looking for a break over $10.

UNG (Natural Gas) Still in a bear trend according to phases. If it has a 30-min Opening Range breakout over 6.75 it could indicate a multi-week bottom. The all-time low is 5.78, the weekly base high is 9.80. So the risk is just over a $1 and the first target is just over $2, but if it breaks $10 then $12 is the next stop.

KOL (Coal) Close over $15! Watch this for general support for any rally in USO and UNG. Note the high after the election of President Trump has been the defining resistance level. A break above it could be the ‘secret’ tipping point to a rally in the energy complex.

TAN (Solar Energy) 22.00 resistance and 21.00 support. That’s all you should focus on.

TLT (iShares 20+ Year Treasuries) Expect support at 126.00 Should not break 124.50. Big support at 124. Resistance at 127.50, 127.90 and then 128.15.

UUP (Dollar Bull) This is simple and big. 23.96 to 24.20 is the low zone of a multi-year range. Look at your weekly charts for any close over a prior week’s high that is over 24.20. Until then, stay away.

FXI (China) Looks strong. Support at 43 and 42.50. Recent high is 43.50 and the next resistance is 44

EWW (Mexico) It looks good. Should hold 56, 57.75 is the high to break.