XRT:IWM:IBB:KRE:IYT:SMH weekly charts
Last week I conducted a part educational, part actionable webinar on the Virtual Money Show. My topic was and always is the Economic Modern Family.
On the weekly charts, some of the members have fallen below their 200-week moving average, while others have tested and held it, and others have yet to trade close to it.
is the newest member of the family and also held his 200 WMA support zone.
This gives us a pretty clear technical picture and is full of actionable if-this/then-this type of trading scenarios.
What do the economic modern families predict and the ?
Retail , Biotech , Semiconductors , Regional Banks and Transportation weekly charts vary.
Then add the Bitcoin chart and you can see that the 200-WMA is either widely respected or strongly opposed.
The most interesting chart might be bitcoin as it plummeted about $1000 from the 200-WMA while the Russell 2000 plummeted decisively below.
What could that mean?
Bitcoin’s dominance in the crypto space continues to increase as the price liquidates on the heels of Celsius.
In the past, rising dominance has pointed to a tradable bottom in bitcoin.
More importantly for now, if BTC has any impact or can turn out to be a reliable market indicator, we need to watch this 200-WMA.
Can it continue and if so, is this a general relief for the stock market?
There we look at the rest of the family. Interestingly, XRT holds its 200-WMA.
Meanwhile, IYT or the demand side has broken the 200-WMA. And KRE plus SMH are still a long way off – we can call it relative strength in banks and semis at this point.
Biotech has declined more than any other. If it closes the week above 105.39, that might be a good place to look for a rebound.
Meanwhile, if we focus on XRT or the retail side of the economy, no one can argue with the price weakness or the miserable consumer confidence stat.
That XRT is currently overtaking IWM could be something, though.
A lot will depend on the CPI and the FOMC. But for now, maybe we can draw a parallel between Bitcoin and the consumer. And maybe we can continue a measure of patience to see if they both break the 200-WMA for more pain this week.
Or if they hold, suggesting a bear market rally – or another opportunity to trade for quick profits.
ETF summary
() 380 now central resistance with 360 next support
Russell 2000 (IWM) 168.90 May low so will see if it holds
() 306.28 May lowest central support at 294
() 263 of the 200-WMA with 280.21 resistance
KRE (Regional Banks) 56 the 200 WMA
SMH (semiconductor) 195 some minor support with 220 resistance
IYT (Transportation) 211.87 to get the 200-WMA back up
IBB (biotechnology) 105.39 pivot area
XRT (Retail) 60.62 the important 200 WMA support line
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