Instagram picture by ‘mebysshe’

If look at only the top of today’s picture you may find it hard to figure out what all the green things are, but when you see the bottom half, a dock, the top makes sense. Sounds like the market. Keep your eye on the whole picture.

Yesterday I focused your attention on IYT, XRT and KRE as the Modern Family Members that have spent the last couple weeks rising from their technical depths of despair.

I also suggested that they may be looked upon as the fuel for the market’s next bullish move higher.

Today the market as a whole was mixed and seemed interested in, but unable to, move higher.

IWM was the strongest of the stock indexes, but it’s also the farthest from its all-time highs. This seemed to be the general pattern today - buy the laggards, and sell strength.

If you look at our sectors summary table you’ll notice that the percent changes for today where relatively small with only 3 moving more than 1%. The two biggest UP movers came from the two worst performers over the last 6 months – XRT and XLE.

So the trends I spoke about yesterday were very much in play today.

The one sector that fell more than 1%, XHB, has a solid six month trend and until today was also the top mover over the last 5 days. Sounds like it was just time to take profits.

This is healthy sector rotation, and how bull market pause before advancing.

This doesn’t mean the current leaders are in trouble, it means the bulls are getting stronger.

S&P 500 (SPY) Big breakout continues higher, but it was a consolidation day. Look for support at 249.60-.30 then 248.80, 248.40, and then big level to hold now is 248. Resistance at 250.60

Russell 2000 (IWM) Nice trend day. Support is now 141.65, 141, 140 then 138.45 is important support to hold. Resistance at now 142.30 and 142.70.

Dow (DIA) Finally got new highs. Support at 221 so that’s now support, then next level at 220. New highs over 221.68

Nasdaq (QQQ) Consolidation day. Look for support around 145.30. Resistance is at the highs at 146.60.

KRE (Regional Banks) Inching close to the key level to break, 53. The 51-52 level should be good support now. 53 is the next big level to break.

SMH (Semiconductors). Took out all time high by 2 cents and pulled back into its consolidation for the day. Look for support at 88.70, and resistance at new highs at 89.74.

IYT (Transportation) Inside day right under key level of 172. Look for support around 170. Resistance at 172.20-.50 is resistance.

IBB (Biotechnology) Another consolidation day in a sector with nice compression at highs. Support around 330-328.80. Breakout above 336.80.

XRT (Retail) Nice gap up, then consolidated right under the big number to clear, 41.50. Look for support from 41.20-.00. Should hold 39.75. Resistance around 41.00-.50 so I’d look for consolidation here.

IYR (Real Estate) Weak again but held the key level of 81, which is the key level to hold. Resistance at 82, 83, and 83.50.

XLU (Utilities) Weak consolidation day, but held key level of 54.60. Resistance likely at 55.40.

GLD (Gold Trust) Weak day, closed under 10-DMA for the first time early August.  Support at 125 and resistance at 127.50, then last week’s highs at 128.32.

GDX (Gold Miners) Consolidation day, but still under the 10 DMA. Look for support at 24.10. Expect a resistance at 25.00, 25.70 and then more at 28.25

SLV (Silver) Closed under 10-DMA but in area of support. Lower support at 16.30-.20. Big resistance at 17.40, and 17.50.

USO (US Oil Fund) Nice up day. Look for a close over 10.10. It’s still following the pattern of a major bottom. Should hold 9.60, and must hold 9.30. Big resistance at 10.25.

UNG (Natural Gas) Back up to the key 6.75 area. Needs to breakout over this area. Be patient. Here’s what has been written here for weeks… “Still in a bear trend according to phases. If it has a 30-min Opening Range breakout over 6.75 -6.90 it could indicate a longer-term bottom. The all-time low is 5.78, the weekly base high is 9.80. So the risk is just over a $1 and the first target is just over $2, but if it breaks $10 then $12 is the next stop.”

KOL (Coal) Big break below 10-DMA and multi-year highs Look for support at 14.90-.80 and breakout above 15.45

TAN (Solar Energy) Another consolidation day under 22.00 resistance and 21.00 support. That’s all you should focus on.

TLT (iShares 20+ Year Treasuries) Big break down day confirming its break of the 10-DMA. Support is in the 126 level. Resistance at 127.

UUP (Dollar Bull) Big close over 10-DMA. Needs to clear 24. Important support at 23.

FXI (China) Pulled back to the 10-DMA. If it can hold over 43.40, the long-term picture looks like an accelerating breakout. Support at 43.40 and 42.75. Next resistance is 46 - 46.50

EWW (Mexico) Lower today but held key support, still trying to hold swing low from mid-August 50-DMA. 55.40 is support it must hold.