Mish’s Daily: Key Index and Sectors Are Inside Last Week’s Range

6 months ago 328 views 5 min read

Michele “Mish” Schneider

Director of Trading and Education

MarketGauge.com

Mish’s Daily: Key Index and Sectors Are Inside Last Week’s Range

Written by Michele ‘Mish’ Schneider

The ultimate technical pattern that represents indecision is when by midweek, the price range remains stuck inside the trading pattern of the week prior.

Such is the case with these 4 Economic Modern Family members.

Granny Retail XRT held critical support thus far, but still has that 10 month consolidation range to break up or down.

Gramps Russell 2000 IWM, to his credit, has hung in there with the rising yields and dollar. Nonetheless, IWM remains rangebound.

Transportation IYT also trades inside last week’s range.

Regional Banks KRE has a much smaller and narrower range, which makes sense given bank earnings coming up.

You put this all together and we have a couple of conclusions.

1. The rangebound members are at least near the top of the range while SPY makes new all-time highs.
2. All have absorbed a lot of headwinds this week.

These 2 members are trading a bit beyond the ranges for last week.

Biotechnology IBB, while the range has not wandered too far, remains closer to the lower end of the bigger range from May.

Sister Semiconductors SMH, is trading above last week’s highs.

While still far from the all-time highs, SMH is doing her job, keeping the market happy.

As we end this week with inflation numbers and earnings, (plus storms and geopolitics), watch the way the ranges from last week reconcile, if they do at all.

Follow the way the ranges break, or sit tight if the ranges remain well, rangebound.

Check out Dave Keller’s time with me on Market Misbehavior podcast-posted later today,

Educational purposes only, not official trading advice.

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