7 Swans have loose allusions to events in the Bible. It basically refers to “fowls that fly….and gather…together unto the supper…”

Last week, in the midst of more mind-numbing yet also par for the course geopolitical and environmental eruptions, the market nonetheless gathered to fly.

The star? Russell 2000, IWM our Granddad of the Modern Family.

Although not to be one upped, Transportation did her own version of piloting into the blue skies. Please pardon the pun.

Interestingly, I wrote last week that in spite of the rally in certain members of the Modern Family, commodities have my attention.

I found the Fed speak curious. Status quo on rates, but October starts the reduction of the balance sheet. Labor market solid, economy strength unconvincing and inflation still too darn soft.

As a result, Gold and Gold miners fell for the week.

However, Gold (GLD) and miners (GDX) held fast to their respective 50-daily moving averages.

Crude oil held above the psychological price point of $50.00.

DBA, the agriculture ETF, stubbornly bearish yet trying hard to base, closed essentially unchanged.

Granny Retail XRT, near death, rallied on Friday putting distance between her price level and the 50-DMA.

So, given all that and IWM making new all-time highs, what could possibly go wrong?

Every so often, I like to take one of the Modern Family Sectors to dissect for you.

What turns a technical analyst on is a clean chart. Big Brother Biotechnology typifies charting perfection.

IBB fell precisely to the converging weekly moving averages in early June. After testing the top of an ascending channel throughout July and early August, by late August, it traded above the channel.

On Friday, IBB tested the top of the channel and held.

It could possibly be looking at triple tops above 336. That means it would have to break below 327 and then close this week below there.

Why do I find IBB, in the midst of the Healthcare reform package debate that has had more aliases than Ol’ Dirty Bastard aka O.D.B aka another 16 more, a big piece of the what-could-go-wrong puzzle?

Speculators.

They need to stay committed to the course. Biotechnology is our Modern Family Big Brother partially for that reason. Highly speculated, IBB is an accurate measure of market sentiment. Not just with retail investors. Mainly institutional ones.

Hence, I keep one eye on commodities and the other eye on IBB. Through 337-travel the world on the 7 seas.

Below 327-behold the 7 swans a-drowning.

S&P 500 (SPY) Nothing particularly scary here, unless it fails 248.50

Russell 2000 (IWM) At the top of the monthly channel, should September end with this below 144, beware. Otherwise, look explosive and not overbought.

Dow (DIA) Runaway gap marginally intact until 222.67 breaks down.

Nasdaq (QQQ) Held the 50 DMA. Through 144.60 area could be a low risk new long setup

KRE (Regional Banks) Inside day just below the 200 DMA.

SMH (Semiconductors) 90.00 big support with 92.05 the resistance to clear for this to resume up

IYT (Transportation) 7/14 made a high of 175.75. Anemic volume last week but close to testing its might

IBB (Biotechnology) 327-337 range to break one way or another

XRT (Retail) Ended a lot more optimistically than it began. 40.00 still bottom-line support

IYR (Real Estate) See-saw action within a channel going back to February.

XLU (Utilities) Oversold in its weak warning phase-could be a sign

GLD (Gold Trust) Through Friday’s highs low risk long setup

SLV (Silver) 15.95 pretty key to hold if this is still good

GDX (Gold Miners) 23.53 a good point to clear with low risk

XME (S&P Metals and Mining) Held the 50 DMA

USO (US Oil Fund) Recovery Phase accelerating

XLE (Sel Energy Spdr Fd) Over 67.00 now pivotal

OIH (Oil Service Holders) Over 25 now pivotal

TAN (Solar Energy) High volume reversal pattern confirmed yet holding near the 50-DMA

TLT (iShares 20+ Year Treasuries) 127 should be resistance

UUP (Dollar Bull) Under 23.85 ominous