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Actionable news in IBB: iShares NASDAQ Biotechnology Index Fund,

The Market Allows Spirits To Pass

As far back as B.C. 500, Halloween began under the name Samhain. The Celts believed the season of the sun ended and the season of darkness began. Hence, the spirits crossed from this world to the other one. (These days, which world is the other one is anybody’s guess.) The stock market, the last day of the month and on this Halloween, saw some stocks fade into darkness, while others remain in the light. The monthly closes we warned you about yesterday:

Biotechnology (IBB) under 327, the Russell 2000 (IWM) under 147, Retail (XRT) under 40.00 and Transportation (IYT) under 176, gave traders tricks and treats. Last night I wrote, “Transportation found a cushion at 176. However, should that level break, beware of falling rocks.” Tran gave us a fright early on by breaking 176 and trading down to 175.59. The spirits tried to emerge from the other world to save IYT, but that level (176) failed. IYT closed at 175.62.

Ignoring his fragile son’s warning, IWM, like the sardonic Mr. Potato Head in the photo, carbo-loaded and rallied. With a sugar rush from all the candy, can the sectors in the darkness cross back into the sun? If IWM roared (still needs to clear 150), then why can’t Granny Retail catch a strong bid? Retail (XRT), managed to close green despite the horrifying move lower in United Armour (UA). XRT has interim support at 39.25. Yet, it really needs to get back over 40.00, then 40.50, the 50-daily moving average. Until then, brick and mortar stores continue to resemble ghost towns.

Moreover, Biotechnology (IBB) must work on its spiritual health. In the meantime, 310 is good interim support. If that level holds, IBB has to levitate itself with whatever otherworldly powers it can muster back over 327. Without the sun, certain sectors (like IYT, IBB, XRT) will begin to resemble creatures of the night that slumber by day inside coffins. Should IYT fail further, bulls can hope that those wooden crosses they’ve been carrying all year to drive into the undead hearts, still work. Better though, if they run far away from those sector bloodsuckers. After all, to prevent yourself from becoming one of the undead, best to avoid haunted houses.


S&P 500 (SPY) Two Inside days. Under 256 some trouble

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

Dow (DIA) 233 the 10 DMA support to hold

Nasdaq (QQQ) Other wordly-149 support

KRE (Regional Banks) 57.00 pivotal on this inside day

SMH (Semiconductors) 100 pivotal

IYT (Transportation) Failed the monthly channel

IBB (Biotechnology) 310 support to hold

XRT (Retail) 39.25 support and needs to retake 40.00

IYR (Real Estate) 79.00 support to hold

XLU (Utilities) Looks poised over 55.20

GLD (Gold Trust) Aside

SLV (Silver) Like to see this return over 16.05

USO (US Oil Fund) Closed the month over 10.55- first time it cleared the 2-year MA since 2014

XLE (Sel Energy Spdr Fd) Unconfirmed phase change to accumulation

OIH (Oil Service Holders) Unconfirmed phase change to recovery

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


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