July 19, 2012
Mish's Daily
By Mish Schneider
First big stock earnings yields post market gain in Google. At time of writing, it's up over 4%. This on the heels of a digestion day in the S&P 500 with a higher close for the 3rd consecutive day. Plus, now a second accumulation day in volume. Always a good sign. Russell 2000 lagged, closing in the red. NASDAQ was the star of the show while the DJ Industrial Average although firm, went more sideways. This adds up to an end of the week anything can happen and more likely than not, not much will happen scenario. Some big earnings next week. Therefore, keeping with the phase, the market is bullish, the divergence as the financial sector sold off keeps it interesting, and each day, finding the shining sector makes for some great daytrading. Swing traders should be holding from when the bull phase reappeared on July 13th.
S&P 500 (SPY) After so many days holding the pivots, 137.22 support. Then 135.50 key support.
Russell 2000 (IWM) Dropped below 80.00 which means now we look at 79.55 next closest support. If can climb back above 80.00 then we are back to looking at 80.96 next resistance.
NASDAQ 100 (QQQ) Gapped higher and closed well although not above 67.25 which is the high from July 5th. A long as today's low holds, market should stay firm, but like the above indexes, watching today’s low.
ETFs:
GLD Slightly underperformed the SPY. Now, stuck between the fast and 50 DMA moving averages.
XLF (Financials) Still consolidating and holding the fast moving average. And that is after Morgan Stanley missed earnings. Perhaps if not long, best to wait for this area to clear or over 14.80.
IBB (Biotechnology) Since September 2011, this has made a new high every month. That might be the best indication to watch-the month that pattern reverses.
SMH (Semiconductors) 30.50 key support.
XRT (Retail) As long as 59.50 holds, starting to look like a reentry long is better now.
IYT (Transportation) Like the hammer candle and the move above 92.45.
IYR (Real Estate) Back over 65.00 and could be end of this two-day correction provided, today's low holds.
USO (US Oil Fund) 99% on the daily 2-day RSI as it approaches nest resistance 35.70
OIH (Oil Services) New 60-day high and close on the lows.
XLE (Energy) 69.06 the 200 DMA and significant resistance.
TBT (Ultrashort Lehman 20+ Year Treasuries) Love to see 15.00 clear.
For more detailed analysis join me, along with hundreds of other subscribers, at Mish's Market Minute and get my daily trade picks, trade alerts, training videos, and exclusive analysis tools. Sign up for Mish's Market Minute now and get a free 2 week trial!
Every day you'll be prepared to trade with:
