Transports Require Precise Steering

Fastest car in its day, the 1955 Mercedes Benz 300 SL Gullwing Coupe took advantage of the booming post-war American market.

Incredibly gorgeous to look at, the unique upward opening doors made entry and exit from its cockpit problematic.

The Transportation chart (IYT) looks to take advantage of the booming post-Trump American stock market.

As of Monday, IYT’s price moved above the monthly chart’s channel line resistance.

That makes Monday’s low price 172.85 important. Not only could it serve as the July Calendar Range low, but also the official “breakout” number to watch hold for further gains.

A chart gorgeous to look at, yes.

Nonetheless, will its unique position as the only Modern Family to begin July on new highs make entries and exits problematic?

The chart shows IYT on a monthly basis. Each candlestick represents one month.

The black line is the channel resistance. Since July began this past Monday the 3rd, the jump above the resistance line is notable.

As for the rest of the Modern Family:

The Russell 2000 has monthly channel resistance at 142.90.

IWM gave back Monday’s gains. Although the chart appears to be in consolidation mode, a breakdown under 140, 138 and then the worst of it, under 136 should stop Trans in its tracks.

Semiconductors (SMH), as suspected after making a 10% correction, rallied 1.9% today. That move did not impact the Warning Phase.

Biotechnology (IBB) held 310 early. On June 22nd, IBB posted a high of 323.45. Should 310 continue to hold, we need to see specs continuing to buy this sector.

Regional Banks (KRE) took out 56.00 after the FOMC announcement.

Several officials want to start the process of reducing the Fed’s large portfolio of Treasury bonds and mortgage-backed securities.

But others want to wait due to the softness in inflation numbers. The rate-setting committee is scheduled to meet to decide interest rate policy on July 25-26.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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