December 20, 2012
Mish's Daily
By Mish Schneider
Expectation for correction was right on and now, with resistance at the last swing high in S&P 500 from 10/19 met today along with an ensuing close on the intraday lows, SPY looks more negative in the short term. NASDAQ held around the resistance levels from last few weeks, but also made a new 2-month high and turned down. Therefore, see more of a correction/digestion mode as we head towards the weekend.
S&P 500 (SPY) As the 10/19 high turned out to stop the move up, now looking at 143.85, then the fast moving average.
Russell 2000 (IWM) Inside day and a doji which means small caps still healthiest. Now question is can they hold up the rest of the market. Follow the range break.
Dow (DIA) One of the ugliest inside days. 132 is support to hold or could see move down to 131. Otherwise, over today's high would be very positive.
NASDAQ 100 (QQQ) confirmed phase change to accumulation. 66.30 area would be real strong sign if holds. The 200 DMA essential support.
ETFs:
GLD As expected, inside day right on the 200 DMA.
SLV Landed on the 200 DMA and a bit oversold.
XLF (Financials) A lot of bank stocks could have had key reversals today after a big run. 16.30 support now.
SMH (Semiconductors) Under 33.20 could see some selling coming in. Otherwise, still looks strong in its new phase.
IYT (Transportation) Overbought but very strong and great buy on a correction.
IYR (Real Estate) 63.75 is the 50 DMA to hold or could get ugly.
USO (US Oil Fund) Unconfirmed phase change to recovery if 32.32 holds
TBT (Ultrashort Lehman 20+ Year Treasuries) Inside day.
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