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How long have we talked about the massive nearly 11-month price consolidation in our dear Granny Retail ? What we waited for was a weekly close over 79.20, a level we have not seen since February 2022. The Family, catching dollars as they fall from the trees, is now hoping that this trend continues. Note – Bitcoin is not in this picture, but he is the MAN, making it rain! Now, with this technical breakout in XRT, the risk is obvious. Either Granny follows through and begins the journey back towards 90 immediately, or we see yet another failure and a run for the exits. Remember, XRT remains an overall underperformer in an economy that needs the consumer. And given high interest rates, a strong dollar and inflation on the rise again, we really cannot tell how long this run will last. Granddad Russell 2000 , did well this past week. IWM held critical weekly support at 227, and now looks poised for a run to new highs. However, on the sobering side of the charts, this past week was only an inside week to the one prior. We must watch the range from 227-243 to reconcile. Brother Biotechnology turned back around. While the monthly chart never failed a key support level, it got a bit scary on the weekly chart. Now, back over the 200-week moving average (green line), we are watching for follow through this week. Sister Semiconductors basically, stayed in the game neither rallying or falling much. That’s just fine by the Family as she has had her day in the sun. Now, for a broader market rally and a healthier outlook for the economy, we look to XRT IWM and… Transportation continues to look like more upside is on the way. In fact, this past week was a new ALL-TIME high close for this ETF. (Click on image to enlarge)
Bitcoin (daily chart) shook the tree. That’s it-all I got to say. Except this-make sure you lock in money and keep a trailing stop. Finally, Regional Banks also did well, clearing some distance over the key 65 level or the level that KRE broke down from in March 2023. That seems like a distant memory. As we head into Thanksgiving and Black Friday, keep watching Granny. I created the as a US centric visual way to assess the sentiment on the economy. Right now, hope springs eternal. Have a listen to the podcast I did with – action packed!
ETF Summary (Pivotal means short-term bullish above that level and bearish below) S&P 500 () 575 support 600 resistance Russell 2000 (IWM) 227 support 244 the area to clear Dow () 430 support 445 resistance Nasdaq () 500 now pivotal Regional banks (KRE) 65 support Semiconductors (SMH) 235 the 200-DMA to hold 250 resistance Transportation (IYT) New all-time high weekly close Biotechnology (IBB) 132 support 138 now resistance Retail (XRT) New multi-year high weekly close. Now must hold 78 iShares iBoxx Hi Yd Cor Bond ETF () 79.50 pivotal and back below More By This Author:
Major Sector ETFs – Retail Rallies
