Will Rally Spread Across All Corners of the Market? Charts Remain Divisive
Over the weekend I covered the Daily charts on the Economic Modern Family, featuring $iShares Russell 2000 ETF(IWM)$ and $SPDR S&P Retail ETF(XRT)$ .
Both are lagging the benchmark and in the middle of their January trend calendar ranges.
As Semiconductors, $NASDAQ(.IXIC)$ , $DJIA(.DJI)$ , and $S&P 500(.SPX)$ continue to post new all-time highs and clear the January trend highs, I keep looking for evidence that the rest of the Family will either soon follow or anchor.
Hence, I turn to the weekly charts.
Weekly Charts
Weekly Charts
Only $VanEck Semiconductor ETF(SMH)$ and $iShares U.S. Transportation ETF(IYT)$ are in weekly bullish phases (when the 50-WMA-blue- is above the 200-DMA-green- along with price.)
While SMH is off to new highs, IYT has a distance to go even in its bullish phase.
What about the rest of the Family?
The good news is that none are in bearish phases.
$SPDR S&P Regional Banking ETF(KRE)$ , and Biotechnology are into resistance and in recovery phases as both are priced below the 200-WMA.
Plus, the 50-WMA is below rather than above the 200-WMA.
As KRE and IBB are in the weakest weekly phases, both areas are vulnerable to a sell-off.
Retail (XRT) sits right on the 200-WMA and is in a weekly accumulation phase.
I believe that the Retail sector is the key to what happens next given:
The widening ratio between the price of growth and Family sectors
Earnings of beg tech
Fed meeting end of the month and interest rate policy
Inflation numbers and particularly the price of food
The consumer sector has been in the game, but now, shows some signs of fatigue. XRT will tell us what comes next.
Source: Investing
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