After oil surges in volume from the U.S import ban on Russian oil, the Oil ETF (USO) closed roughly unchanged from its opening price. This makes USO interesting to watch for Wednesday’s trading session, since the price action shows a large battle between buyers and sellers remains underway.
Having said that, the stocks markets’ reaction remains choppy, with investors watching prices at the pump increase along with other commodities getting hit with higher transportation costs. With the cost to move goods increasing, this can negatively impact inflation numbers, which have already passed over 7%. Nonetheless, the major indices are still holding above recent support levels.
With that said, let’s look at how specific sectors are doing within Mish’s Economic Modern Family. One sector that’s always good to keep an eye on is the transportation sector (IYT), which is holding over support from the lows at $243 – 245. IYT will be especially interesting to watch if oil prices continue higher.
Along with the increase in shipping prices, we should also monitor the retail space through the retail ETF (XRT). Currently, XRT is holding over its recent gap low from 2/24. It can be useful to watch both XRT and IYT together, as each can hint at a possible economic long-term slowdown through the movement and buying of goods. Therefore, investors can watch for each to hold or break under key support levels as seen in the above charts.
Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.
On the March edition of StockCharts TV’s The Pitch, Mish joins Mary Ellen McGonagle (MEM Investment Research) and Danielle Shay (Simpler Trading) as they each bring their five top stock ideas to the table and showcase the strategies they’ve used to select these promising trade targets. Erin Swenlin of DecisionPoint.com moderates as these seasoned technical analysts dive into the action and reveal the themes they are tracking, names they are following, and the charts they are watching to find strength in a time of heightened volatility for markets.
Also, watch Mish’s latest appearances on Bloomberg and TD Ameritrade!
- S&P 500 (SPY): 410 support.
- Russell 2000 (IWM): 188 support.
- Dow (DIA): 322 support.
- Nasdaq (QQQ): 318 support.
- KRE (Regional Banks): 65.46 next support.
- SMH (Semiconductors): 246 pivotal.
- IYT (Transportation): 243-245 support area.
- IBB (Biotechnology): 118 support.
- XRT (Retail): 70 support.
Assistant Director of Trading Research and Education
Mish Schneider serves as Director of Trading Education at MarketGauge.com. For nearly 20 years, MarketGauge.com has provided financial information and education to thousands of individuals, as well as to large financial institutions and publications such as Barron’s, Fidelity, ILX Systems, Thomson Reuters and Bank of America. In 2017, MarketWatch, owned by Dow Jones, named Mish one of the top 50 financial people to follow on Twitter. In 2018, Mish was the winner of the Top Stock Pick of the year for RealVision.