Scott Redler’s Dog Bytes: What’s Next After the Storm?

Now let's dig into some of the big ETF's I'm watching:

On Friday, SPY held the $450 area again. We'll see if today's early strength holds, or fades. $456ish is pivot resistance and big resistance is above at the $460 area. A strong close below $450 opens the door for another leg lower.

QQQ is showing some relative weakness this morning after it gave signals to take down risk the past few weeks. We'll see if it stays below $383.34 and how it handles Friday's low of $378.90. The 100 day is below near $374. We’ll see if it pulls SPY down or reverses higher to relieve some pressure.

IWM’s breakout failure resulted in a move down to the $212 area. It's up small this morning. The longer it stays below the $220 area, the higher the probability it breaks to the downside with $209 as the key area. That would be bad for the macro condition of the market.

Semis were trying to hold up. This morning they are showing some relative weakness. If SOXL breaks and closes below the $59-$60 area, it won't be good for tech.

My XBI call options haven’t worked because this sector has been down for 20+ days. The ASH Hematology conference starts this weekend, but hasn’t been a driver. We'll see if that changes soon.

Positions Disclosure as of 12/5/2021 at 8:06 a.m. ET