September 17, 2012
Mish's Daily
By Mish Schneider
Low volume start of correction/digestion, which is always welcomed by those looking to add or reenter after the market works off overbought conditions. NASDAQ had an inside day with AAPL still hanging tough. Overall, the sectors that have been strong also corrected with the exception of biotechnology, which made yet another new all-time high.
S&P 500 (SPY) 144.45 is the support area. Since it closed under 147, signs point to more correction. But, that is way different than saying Friday was a top.
Russell 2000 (IWM) 84.45-65 is support area. 86.96 now the new 2-year high to eventually clear.
Dow (DIA) 133 would be big correction-one enough to frighten weaker longs. But it would also be a great area to look for reentries.
NASDAQ 100 (QQQ) Hammer candle and inside day. Would follow the range break for next short term move
ETFs:
GLD After Friday's DOJI day and attempt at 2012 highs, took a breather. 169 support
XLF (Financials) Could hold 16.01 old 2012 high. If not 15.70 is strong support.
IBB (Biotechnology) New highs and why one should never fight a trend.
SMH (Semiconductors) Tested and closed near support. Now, watching this to see if can firm and gain upward momentum
IYT (Transportation) Dropped back to the 200 DMA. Another group that has underperformed and would like to see hold and firm.
IYR (Real Estate) Sometimes those weekly Bollinger Bands are harbingers for a shorter term move. But, still a hot group and will watch for signs correction is done.
USO (US Oil Fund) 36.70 the 200 DMA failed and thereby prevented this from confirming a phase change.
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