November 2, 2011
Mish's Daily
By Mish Schneider
Spectacular gains, drops then gains since last week. Low volume after a big distribution day yesterday. QQQ holding above the 200 DMA with an uninspiring day. Midcaps (IWM) on the island top signal which only negates if that gap to 73.93 gets filled. An interesting factor in how this all plays out are the financials (XLF). Several stocks in that sector had the narrowest range day today in quite some time.
SPY: For awhile, was writing about 123.50 as a breakout point. Been above and below since. Now looking like a pivotal area again.
IWM: Island top still in play until gap fills. Otherwise, under 70.95 worrisome.
QQQ: Held the 200 DMA with next support 55.35. has to clear 57.50 to get interesting.
ETFs:
GLD 168.20 the declining 50 DMA to hold now.
FXI (China) Perfect example of negating an island top by filling the gap. A weekly close over 36.50 could mean a test of 40.00 near. Has last week's high to contend with first.
SMH (Semiconductors) Could not clear Yesterday's high. Over 31.35 gets interesting, over 31.60 even more so. Otherwise, 30.20 next level to look for on downside
XLF (Financials) Technically, still a gap and island top. After the interesting hammer candle yesterday, could not clear pervious day high.
XRT (Retail) Did not disappoint as the best looking sector/group even as Bernanke talked about the pre recession lack of consumer confidence.
OIH (Oil Service Holders) Also working an island top unless gap is filled
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:
