Last night after the sell-off, we had this to say:
“For junk bonds and small caps, the next day or two will be very telling on whether this a buyable dip, or the start of a bigger correction.”
We also wrote 4 scenarios that could help you decide next moves:
Furthermore, we noted that Granny Retail did better yesterday and Transportation, held 266. Granny Retail rose about 1.5%.IYT ran up 3.5%-hard to argue with strong transports!As you can see from the chart, Granddad Russell IWM did its job for today.
ETF SummaryS&P 500 () 500 now the pivotal point-490 near-term supportRussell 2000 (IWM) 195 supportDow () 385 now resistanceNasdaq () 430 pivotal supportRegional banks () Back to the 45-50 rangeSemiconductors () 200 pivotalTransportation (IYT) 266 support. 282 the highs so farBiotechnology () 135 pivotalRetail (XRT) The Jan calendar range high at 73 now must holdMore By This Author:Did Small Caps Suffer Near-Term Irreparable Damage? Year Of The Dragon – Will Vietnam ETF Breathe Fire? How Will We Know When The Rally Is Over?
