Regional banking ETF (KRE) confirmed the bullish phase shift

The Regional Banking ETF (KRE) made two consecutive closes on its 50-day moving average, confirming a bullish phase shift.

KRE is also the only ETF in Mish’s modern economic family that maintains a bullish phase on a daily chart.

Therefore, we should keep an eye on KRE as well as its holdings for trading ideas given its outperformance against other key ETFs.

Although KRE has confirmed a phase shift, we need to be cautious in time trading as the major indices are re-entering a choppy price zone.

With the current volatility, it would not be surprising to see KRE return below its 50-day moving average at $73.17 if the market begins to stagnate at its current price levels.

This is why trade inputs are so important.

Simply buying an outperforming stock/ETF does not mean you will make money from a trade.

Waiting for the right entry point makes all the difference.

Currently, KRE is at a pivot price level, as shown by the black line in the chart above.

$74 is where KRE needs to hold while $76 and $78.80 are the upcoming resistance levels.

That said, we can look for KRE entry points above these levels, but we can also look into KRE’s top holdings to look for potential big performers.

One of them is Silvergate Capital Corp (SI).

A potential bonus for SI is its ability to provide cryptocurrency banking as well as regular banking.

Given that Bitcoin recovered over 41,000 on Monday, this could help give SI a further boost in price going forward.

Currently, SI lingers below its 200-DMA at $129.35.

Ideally, SI will need to clear $131 and hold that price level to fully break out.

Analysis and summary of ETF trading:

S&P 500 (SPY) Hold above the 10-day moving average at 435.72

Russell 2000 (IWM) 208 resistance.

Dow Jones Industrials (DIA) 341 the 10-day moving average.

Nasdaq (QQQ) 344 fulcrum.

KRE (Regional banks) Must contain more than 74

SMH (Semiconductors) 272 to erase.

IYT (Transportation) must clear the 200-day moving average at 262.02

IBB (Biotechnology) Flirting with the 10-day moving average at 126.12

XRT (retail) 75.67 to hold.

Twitter: @marketminute

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