May 29, 2012
Mish's Daily
By Mish Schneider
After inside days and a long weekend, good start to market with the gap higher, a gap which held throughout the day. One could also say that the possible basing action is now more probable, with a move to test some higher level resistance more in the cards. However, advisable to stay focused on the strong warning phase. Best way to do that is to control risk, adjust position size and allow profits to run.
S&P 500 (SPY) As long as 132.75 holds, next stop 135.50 area.
Russell 2000 (IWM) Provided 76.50 holds, next resistance 78.20.
Dow (DIA) Can see 127 if 125 level holds
NASDAQ 100 (QQQ) Still concerning regardless of the gap day. Reason being that it closed within and not above the basing action of the last 2 weeks. Needs to clear for more confidence.
ETFs:
GLD Fine example of what a bearish phase looks like when it gaps higher then fails the gap low. Big bear candle now.
XLF (Financials) Closed right at last week's high. Still waiting for a weekly close above the weekly moving averages.
SMH (Semiconductors) Return move over the 200 DMA which gives this an unconfirmed accumulation phase
XRT (Retail) Will watch the 50 DMA now as resistance
IYT (Transportation) Also about to test the 50 DMA
IYR (Real Estate) 61.45 support as it is at the 50 DMA and has to power through or will be a warning sign for the whole market
USO (US Oil Fund) Still no heartbeat
XLE (Energy) Could not close over 66.45 even though traded above intraday. Another possible warning on today's rally
TBT (Ultrashort Lehman 20+ Year Treasuries) TLT closed under the fast moving average.
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