August 14, 2012
Mish's Daily
By Mish Schneider
The market begins looking like it will challenge 2012 highs, and winds up closing basically unchanged. From a technical standpoint, this indicates continued consolidation on low volume. Although traders await a nasty correction, that does not appear to be a given. The best technical read I see is that the Financial Sector ETF (XLF) could not clear recent high 15.06, which is not a heavily weighted long term resistance area, more of a short term point to clear. In other words, the bears could come out, but the bulls remain in charge.
S&P 500 (SPY) 139.70 is the fast moving average support. Volume light, but does register as an accumulation day in a bull phase.
Russell 2000 (IWM) 79.09 the fast moving average to hold. Super light volume.
Dow (DIA) 131.90 did not clear with any oomph at all. Now, 130.93 is the fast moving average support to watch
NASDAQ 100 (QQQ) RSIs overbought which means a correction would be a relief. 65.31 was the area that once broke, took it to this leg up. Now support area
ETFs:
GLD Now, under the 50 DMA after looking like it would blast off. 148-158 is a big range, but a range nonetheless
XLF (Financials) Since could not clear 15.06, now let's see what happens at 14.84
IBB (Biotechnology) This did what it had to do.
XRT (Retail) 59.70 now fast moving average support
IYT (Transportation) 91.16 still key to cross with a close above
IYR (Real Estate) Under 64.00 and a lot of enthusiasm in this group will fade. Back over 66.21, party on! DOJI day today
USO (US Oil Fund) 35.35 has to clear for another leg up.
OIH (Oil Services) Consolidating like so many others. 39.60 the 200 DMA to hold
XLE (Energy) Sideways and still consolidating
TBT (Ultrashort Lehman 20+ Year Treasuries) Big move all done with the gap higher
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