August 1, 2012
Mish's Daily
By Mish Schneider
Dow closes at 12,977 after everyone celebrated 13,000 last week. FED said nothing new, but why should they do anything now? Furthermore, there is nothing new about the incredible divergence we see. Been singing that tune for months! So, what's changed? Still in a bull phase in everything except the Russell 2000 which has been underperforming all along. Concern? Yes, of course. Takes 2 days to confirm a phase change which means a second close under the 200 DMA will do it. Back above, and the rest of the market should run up and fast!
S&P 500 (SPY) After 2 days of accumulation in volume, we now have 2 days of distribution. 136.60 the fast moving average support.
Russell 2000 (IWM) 77.60 either resistance or if clears, a reason to buy against Wednesday's low.
Dow (DIA) 127.95 is the gap low to hold now. Back through 130.50 would be encouraging
NASDAQ 100 (QQQ) Let's see what happens at 64.00 before we throw in the towel
ETFs:
GLD 155 tested ending with a DOJI day after gnarly gap down.
XLF (Financials) 14.50 important again.
SMH (Semiconductors) 32.40 pivotal
XRT (Retail) This has made lower highs on each swing up.
IYR (Real Estate) Now it has to clear 66.21 or 63.70 level should come up fairly quickly
USO (US Oil Fund) Inside day
OIH (Oil Services) This looks interesting after it is back above the 200 DMA. Perhaps the next rotation will be in the oil and energy sectors.
XLE (Energy) I am watching this sector as well.
Every day you'll be prepared to trade with:
