Goosenecks State Reserve, Utah

Hikers that do not realize these treacherous conditions, often require a helicopter to airlift them to safety. Thus far, traders who traverse and buy the dips in the stock market, have found their way back to the top. Nor have they needed emergency airlifting to safety. Surely, certain consumer habits and technological advances are here to stay.

Facebook has over 2 billion monthly active users. 75% of all people buy on Amazon. Apple expects 40 million units pre-ordered for the iPhone X. Netflix nears 100 million subscribers. Google has 3.5 billion searches per day. Based on those stats, sounds highly unlikely that dip buyers will need rescuing anytime soon. Yet, other more U.S. economy-related sectors struggle as this week begins.

In December 2015, Nasdaq made new highs while the Russell 2000 declined. Will FANG erode into an incised meander? Tomorrow is the last day of October. As Big Brother Biotechnology (IBB) appears less likely to recapture the weekly channel at 327, it could see 300 before it sees 327 again. The Russell 2000 (IWM), tested 147 last week. Now, should that level break, we are looking at 144.50 before the possibility of new buyers resurfacing. Last week, Transportation, (IYT) found a cushion at 176. However, should that level break, beware of falling rocks. Retail (XRT), failed 40.00. Looks as though momentum to the downside, at a time when brick and mortar should do well, increases. 2 weeks ago, I wrote about the 100-year historical ratio low between equities and commodities. After staring at the chasm for a while, we figure that the best way to hike down Goosenecks, besides with enough supplies, is to belay. That’s how we see the market. Belay, so the fall is controlled. And, anchor or counterbalance the chance of getting hurt by hedging with commodities.

S&P 500 (SPY) Inside day. Under 255.63 some trouble

Russell 2000 (IWM). The 147-support holding. 144.50 super important and if good, this needs to take out 150

Dow (DIA) 232.75 the 10 DMA support to hold

Nasdaq (QQQ) 148.75 the 10 DMA support

KRE (Regional Banks) Low volume reversal candle with a move under today’s low taking this to 55.50 then 55.00

SMH (Semiconductors) 100 pivotal

IYT (Transportation) 176 is so key- by tomorrow –

IBB (Biotechnology) 305.50 the 200 DMA

XRT (Retail) 39.25 support and needs to retake 40.00

IYR (Real Estate) 79.00 support to hold

XLU (Utilities) Inside day and looks poised over 55.20

GLD (Gold Trust) 121.50 to clear next

SLV (Silver) Like to see this return over 16.05

GDX (Gold Miners) 23.10 good point to clear

USO (US Oil Fund) If closes the month over 10.55 first time clears 2-year MA since 2014

TAN (Solar Energy) 23.00 now the support to hold

TLT (iShares 20+ Year Treasuries) 125 should be resistance now

UUP (Dollar Bull) 24.37 the 200-week MA