?All last week, we watched the Transportation Sector represented by the ETF IYT. It went up and down and all around the monthly channel top and the 6-month calendar range high. It ultimately closed the week at 175.67. Thereby, IYT failed both of those key reference points, yet held the 50 daily moving average at 174.65. The significance of holding the 50-DMA has to do with phase. With IYT in a bullish phase, the failure of the other reference points will become increasingly noteworthy should the phase deteriorate as well. When the market fiesta purposely presents its most spectacular hot-air balloon as its final curtain, so to speak, it better be spectacular. The motorcycle fully inflated, like the transportation sector, must gather fire to take-off. Otherwise, the spectators, with cameras ready, document nothing more than a lot of hot air without enough propulsion.

The Russell 2000 (IWM), ended the week with 2 inside days. That Harami candlestick pattern means a pause in the action as investors try to decide next direction, up or down. Best tell? IYT. Yep, should IYT elevate back above 176 and hold, expect IWM to attempt a move to 150. Above there, new ballgame.

And not one to dismiss readily, Granny Retail (XRT) closed marginally under 40.00. XRT needs to hold on as tightly as our motorcyclist grips those handlebars. Besides, Granny has one major reason to stay alive. Her daughter Semiconductors. I read that Wonder Woman is the highest grossing superhero movie ever.  We tagged SMH as Wonder Woman long before the film came out. Therefore, no surprise the rally in that sector is omnipotent.

With another new all-time high in SMH’s, our Sister’s Golden Belt is truly the symbol of the Amazon supremacy. (pun intended). Meanwhile, Biotechnology (IBB), already in a warning phase, made a relatively strong comeback from the 310-support level I wrote about. IBB merely needs to hang tough now that many speculative longs are gone. If so, we can expect to see renewed interest. Especially, if the other members of our Modern Family do the right thing.