January 30, 2013
Mish's Daily
By Mish Schneider
A red close all around with Russell 2000s finally giving it up under the fast moving average, while NASDAQ, although under pressure, outperforming the rest of the indexes. I have been writing about the S&P 500 and its near term overdone internals, which hopefully gave you ample time to take profits on longs-some of which were initiated the start of the year! To rewrite: Tops are typically made one of four ways: Blow off rally with huge volume, slingshot patterns, Island tops or, 2 or more tops made at resistance areas. Today, we see the possibility that IWM met with resistance, SPY with a slingshot, DIA a double top but still an inside day and QQQ, doing its sideways dance.
S&P 500 (SPY) First distribution day in volume in quite some time. Under 149.70 would be more defensive, but let's not confuse that with bearish. Phase still well intact
Russell 2000 (IWM) A good selloff to clean out longs for sure. Now, with a strong up phase intact, yet a long way down to a major moving average, caution yes.
Dow (DIA) Double top possible but also an inside day.
NASDAQ 100 (QQQ) Continuing to go sideways, has best shot for firming right now if can clear 67.50.
GLD Closed above the 200 DMA for an unconfirmed phase change to warning.
XLF (Financials) 2 inside days in a row-now that's interesting
IBB (Biotechnology) Been writing about the toppy action and now, broke the fast moving average.
SMH (Semiconductors) Outperformed today. Looking how 34.00 holds up.
XRT (Retail) 66.00 an area that is important for this to defend or could see some more selling coming in.
IYT (Transportation) After 3 shooting stars, we are out of our long from 90.00. Thanks transportation!
IYR (Real Estate) After the inside day, broke Tuesday low and stopped on the fast moving average. Gave up the last 5 days of work in one shot.
USO (US Oil Fund) Subs: High RSI, but hanging touch. 35.65 some resistance and should hold 35.00
OIH (Oil Services) Could have been it for now especially since it did not clear a monthly moving average going back to mid 2011
TBT (Ultrashort Lehman 20+ Year Treasuries) FED announced no change to rates. Watching to see where this finds support since that might be unsustainable.
XHB (Homebuilders) Looks toppy.
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