January 20, 2012
Mish's Daily
By Mish Schneider
After the market, GOOG reported weak and got hit hard. But, were there clues? Yes. The week of January 6th, GOOG ran to new all time highs and closed on the lows that week. Then, it began the following week with a gap lower. As I am quick to remind you not to ignore gaps to the upside (NASDQ i.e.); nor should you ignore key reversals and gaps lower such as in GOOG.
S &P 500 (SPY) Low volume day and not yet overbought. Could there be a dip? Of course. But for now, dips should be viewed as buy opportunities. At this point, this is not what a top looks like.
Russells 2000 (IWM) Comparing this chart to SPY, this has not matched the high of the move for the same week ending August 5th. In IWM it is 81.00. I see that as 2 possible scenarios developing. One is that we have another possible leg up. The other, a weekly close tomorrow under 96.95, ominous.
NASDQ (QQQ) All time high was made in July at 59.83. Today's high 59.97 with closing price 59.86. Could this turn out to look like GOOG? Tomorrow is key. A close on the weekly low would not bode well. But, unless that happens, would view anything less dramatic as a correction to work off overbought conditions.
ETFs:
GLD Could not clear 161.65 which means for now, a possible triple top in the works but with inside day-yet unclear.
XRT (Retail) What dream follow-throughs are made of.
XLF (Financials) 14.17 the October 27th high.
IYR (Real Estate) Resistance still resides at 60.00.
IBB (Biotechnology) Took a breath before it got to 116. Support now at 112.
XLE (Energy) 2 closes above the 200 DMA confirms the phase change. 70.80 now the place to hold. Subs-not as powerful a move as other sectors which could mean has more to go. Big eyes on 71.98 January 10th high.
TBT (Ultrahort 20+ Year Treasury Bonds) Took off ½ as it stopped at the 50 DMA.
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