October 17, 2012
Mish's Daily
By Mish Schneider
The gap and follow through today put all 4 major indexes over their 10-day moving averages, but also into significant daily resistance levels. DIA and QQQ had accumulation days, but volume was not impressive. After the move up of the last two days in this market I'd be surprised to see a large uptrend day tomorrow. Subs: Pivots are all positive.
S&P 500 (SPY) look for resistance at 154.88 and 146.34. There should be support at 145.00 and 144.66.
Russell 2000 (IWM) This one is still slow to get moving and needs to clear 83.44. Then expect resistance at 83.90. On the down side, it's important that it holds over the high of yesterday, 82.64.
Dow (DIA) 135.85 is significant resistance and a good place to look out for a high if it moves up tomorrow. Look for support at 134.76 and 134.57
NASDAQ 100 (QQQ) The strongest of the 4 major indexes today, but it's very closely following AAPL which had a good day. It's over the 10 DMA but still under the 50 DMA at 68.38. Expect resistance at 68.38 and the 68.70 area.
ETFs:
GLD Under 170 in defensive mode unless can get back above
XLF (Financials) The last couple weeks has been a sloppy, but healthy consolidation. If 16 should be support and could be used as a stop for positions.
IBB (Biotechnology) Needs more time to consolidate for a solid move higher. 145.20 area will likely be strong resistance.
SMH (Semiconductors) INTC is down after its earnings report. This area of tech is not worth too much attention right now.
XRT (Retail) If it moves higher it is worth following, but if it moves below the 50 DMA again it would be a very negative sign.
IYT (Transportation) This has been stuck between 86 and 96 all year. I'd avoid trading it.
OIH (Oil Services) Broke out of the daily range on good volume. Watch the 50 DMA above at 40.79. For support look at 40.13.
XLE (Energy) nice strong day today. 74.50 is the next big area to clear. Look for support at 73.60 area.
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Best wishes for your trading,
Geoff Bysshe
President!
Filling in for...
Michele Schneider
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