The market spent the day waiting for clues about the likelihood of the healthcare bill vote passing tonight. However, the vote was postponed.

Today the market was patient, but we shouldn’t expect that to be the case if Washington continues to delay or disappoint. When people are in a bad mood, they’re generally not very patient, and the same could be said for the market.

Mish’s Modern Family is already in a bad mood. Only the SMH and IBB remain in Bullish Phases, and that leaves IWM, IYT and KRE in Warning Phases, and XRT is in a Bearish Phase.

Furthermore, when I look at our Triple Play price leadership indicator for each Modern Family member they are all bearish accept SMH. This means that if IBB changes from Bullish to a Warning Phase it may do it in a big way, but that’s not even the biggest problem

Earlier today I posted a Trades & Tutorials video here showing how the Triple Play indicators suggested that KRE’s move to a warning phase could be a big one, and it was.

It’s been a disappointing week for all the major averages as well as the Modern family, but one or two bad weeks isn’t something to lose your patience over. Plus, the DIA, SPY and QQQ are still all in Bullish Phases, and they’ve enjoyed a nice bull run so far in 2017.

However, the same can not be said for the IWM, so we need to pay very close attention to IWM. If IWM breaks below its lows of this week, it won’t just be having a bad week or two. It will be having a bad year!

If IWM makes new lows for the year it could lead the whole market to lose its patience and confidence in Washington’s ability to deliver on many campaign promises that have fueled the 2017 rally.

Keep your eyes on IWM and IBB.

S&P 500 (SPY) 232.60 the 50 DMA. 235.50 area resistance

Russell 2000 (IWM) 133.75 the 100 DMA now pivotal. 132.78 is the low of the year.

Dow (DIA) 204 the 50 DMA. Back thru 208 nothing short of a miracle

Nasdaq (QQQ) 129.70 weekly low is key to hold, 131.25 area as key to clear

KRE (Regional Banks) 54 is big resistance 51.50 key weekly low.

SMH (Semiconductors). 77.80 support and 79 resistance

IYT (Transportation) Support around 159.25 to 160.00. Big resistance at 164

IBB (Biotechnology) Clutch hold at 287.50 that must continue to hold. 293.50 resistance

XRT (Retail) needs to hold over 41

GLD (Gold Trust) 120.27 the 200 DMA with 118 pivotal

SLV (Silver) Confirmed recovery phase

GDX (Gold Miners) stuck under 50 DMA

USO (US Oil Fund) Over 10.30 again better

TAN (Solar Energy) Main support is 17

TLT (iShares 20+ Year Treasuries) Confirmed recovery phase, 118 support and 122 resistance

UUP (Dollar Bull) 25.65 recent swing low support