When the moon is full, the gravitational pull of the moon and sun are combined. Hence, the full moon exerts a powerful pull on the Earth.

The “lunar effect” whether real or imaginary, has no scientific evidence to back the claim of its impact on animals, humans and/or the stock market.

Regardless, reports of increased “lunacy” (Luna in Latin means moon) around the full moon are well documented.

Given the market’s near certainty of an interest rate hike when the Fed meets this week, last Friday the dollar declined and interest rate yields softened. (Incidentally, the ETF coverage from last week that follows the commentary mentioned several times my negative bias on the dollar.)

All the major macro data that has come out recently shows modest growth for the economy. However, expectations continue to outweigh the stats.

The fuzzy full moon in the photo represents the fine line between collective consciousness and scientific fact.

Regarding the market, we surely witness our fair share of a fuzzy moon. On the one hand, we see an overall weakening in market breadth. The Russell 2000, for instance, confirmed a warning phase.

On the other hand, the Nasdaq 100 closed near its recent all-time high.

Lunacy in the face of modest growth?

To repeat the sentiment about the the Modern Family, they will not find the same level of optimism as tech and Nasdaq until tangible policies are introduced.

Nevertheless, lunar effect of not, Transportation, after testing the 50 daily moving average, on Friday returned to a Bullish Phase. Should IYT remain above the 50 DMA, that could have its own powerful pull on the market.

The drop in the U.S. dollar will also impact the gravitational pull. Considering last week’s percipitous drop in metals, energy and the softs, many low risk buy opportunities could emerge this week.

If so, I see two positive implications. First, just that-low risk buys-my favorite.

Secondly, a win-win for the economy provided inflation can remain in check while the economy continues to modestly grow. Then, the Fed gets to do its long-overdue thing and feel good about it.

Possibly the most optimistic I’ve been for some time makes me wonder if I too am not feeling the effect of fuzzy full moon lunacy.

Is this a mood or a moon swing?

Whatever. The moon hit my eye…And that’s amore!

S&P 500 (SPY) 237.50 cleared marginally and now pivotal.

Russell 2000 (IWM) Clearly we need this back over the 50 DMA to get too excited.

Dow (DIA) 209 pivotal number to clear-if not, defensive

Nasdaq (QQQ) When this looks at the full moon it grows FANGs. 130.80 pivotal support

KRE (Regional Banks) Tested but closed right on 57 the pivotal support. Back over 58 better.

SMH (Semiconductors) Cleared 77.50 now pivotal

IYT (Transportation) Unconfirmed bullish phase-167.20 the 50 DMA

IBB (Biotechnology) Closed right at 300, amore?

XRT (Retail) Not convincing. But at least it closed over 42.00

IYR (Real Estate) 76 support.

GLD (Gold Trust) 114 big support held Friday-I am watching carefully for entry

SLV (Silver) Like that this held 16.00-low risk support line

GDX (Gold Miners) 22.00 pivotal

USO (US Oil Fund) Another flush. Blow off bottom? No evidence yet except the double-triple the average volume three days in a row

OIH (Oil Service Holders) Could be bottom in place

TAN (Solar Energy) 17.75 in focus-then like better over 18.05

TLT (iShares 20+ Year Treasuries) 118 now resistance

UUP (Dollar Bull) 26.02 support and now 26.29 resistance