7 Rooms Of Gloom

June 25, 2015

Mish's Daily

By Mish Schneider

The Four Tops 1967

Wednesday night I mused on Salome’s Dance of the Seven Veils related to our Modern Family (IWM, XRT, IYT, SMH, KRE, IBB), and Cousin Eddie (GREK)-seduction that ends with a beheading.

Tonight, in honor of NASDAQs Four Tops at 111.16, 111.08, 111.03 and 111.13 all posted since the end of April through June 24th, I place the Family in 7 Rooms of Gloom.

Ironically, GREK, the Greece ETF, held up the best of the bunch percentagewise intraday.

The Russell 2000 confirmed a topping candle yet has a lot of underlying support. Retail held 100.00 and needs to continue to do so, especially on a closing basis.

Regional Banks could be digesting by going sideways. Will keep eyes peeled on the 44.00 level as a good line in the sand of support. Biotechnology is having a more gentle correction while Semiconductors traded above the 50 DMA and inside the trading day of Wednesday.

Transportation, in the words of The Motown group’s song, “live with emptiness without your tenderness.”

Clearly, I utilize hyperbole since the song title doesn’t precisely fit all of our now expanded family members. Furthermore, there are positive signs with no reason to believe at this point, that the trading range is ready to reconcile either to the up or downside.

The final verse of 7 Rooms concludes optimistically:

Hence for Friday we sing,

“All the windows are painted black
And wait right here till you come back
I'll keep waiting, waiting
Till your face again I see

(Coming back
When are you coming back?)”

S&P 500 (SPY) Confirmed phase change to warning. 209.50 support, 210.80 pivotal and over 211.61 good again

Russell 2000 (IWM) Low volume reversal tops are suspect. This is holding the 10 DMA thus far at 127.31.

Dow (DIA) Confirmed warning phase. A while back I had a long with a stop at 177.07 that never got touched-no position now but watching that level with a move over 180.30 good

Nasdaq (QQQ) Until we get a decent clearance over 111.16, next support to hold is 109.70 then the 50 DMA

XLF (Financials) 24.65 support to hold

KRE (Regional Banks) Even in a dull weak tape, this held up well

SMH (Semiconductors) Inside day. Over 58.47 better but for now, we at least want to see this hold 57.10

IYT (Transportation) New lows for the year

IBB (Biotechnology) 373.35 is the fast moving average support should this turn around

XRT (Retail) Holding 100

IYR (Real Estate) Buckling regardless of the rates as of Wednesday action

XHB (US HomeBuilders) 36.98 is the highest weekly close since 2007-

GLD (Gold Trust) Typical lack of follow through type action since April

USO (US Oil Fund) Noisy until it clears 21.50 or fails 19.00

TAN (Guggenheim Solar Energy) If holds 42.00 good and over 43.50 even better