January 31, 2013
Mish's Daily
By Mish Schneider
The market followed through to the downside as the correction from the highs part deux. Volume is light. Critical support is still holding and the overbought conditions are abating. Friday could be interesting as the unemployment numbers will be out before the market opens.
After tonight’s report, you will be receiving daily updates from Geoff Bysshe, President of Marketgauge. I will return February 11th. Trade well!
S&P 500 (SPY) A bull phase correction is pretty much the sum of it. Healthy as far as I can see.
Russell 2000 (IWM)Inside day and strong with a close back above the fast moving average. That tells me that tomorrow should shed light on whether this will resume the rally from here or break down further.
Dow (DIA) Interesting candle-new highs, close on the lows.
NASDAQ 100 (QQQ) In the month of January, this had traded in 1.00 range from 66.50 to 67.50. I love that since we know what to do once that breaks one way or another
GLD Failed the 200 DMA which is why we look for 2 days to confirm a phase change. Now, this is back to a bear phase, but again, unconfirmed
XLF (Financials) After 2 inside days, held the fast moving average. This looks like a correction at this point and not the end of the bull move
IBB (Biotechnology) Even though this turned green, still looking a bit heavy unless it clears 146.80.
SMH (Semiconductors): 34.00 still a great area to hold.
XRT (Retail) Defended 66.00 for sure. Through the recent highs hard to argue with
IYT (Transportation) Closed just shy of the fast moving average, but still beneath our long exit price
IYR (Real Estate) Winner of the best correction! 66.50 should be a support area
OIH (Oil Services) Did not end the month over the monthly moving average, but a good place to look at for the upcoming month
XLE (Energy) Subs: Possible slingshot here too but with a doji above S1-not real clear
TBT (Ultrashort Lehman 20+ Year Treasuries) If this drops to 66.00 would reenter the long position
XHB (Homebuilders) Looks toppy but manage to hang onto the fast moving average.
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