May 10, 2012
Mish's Daily
By Mish Schneider
S&P 500 (SPY) officially oversold on the daily indicators. Warning phase gathering momentum. Would prefer to sell rallies
Russell 2000 (IWM) Inside day meaning, in the current warning phase, should see some buying come in over today's high, but if breaks today's low, another leg down likely.
Dow (DIA) Most oversold of the indexes. Expect last swing low to hold with any rally close to 130 a likely short opportunity
NASDAQ 100 (QQQ) Inside day. Big eyes here on the way today's range breaks since a run above today's high could change the near-term outlook which for now, still looks bleak.
GLD Oversold which means have to wait for some rally before putting on a new short position
XLF (Financials) Valiantly tried to climb above 15.00 instead closing under the swing low from early April.
IBB (Biotechnology) Inside day with next underlying support at 121.65.
SMH (Semiconductors) Remains oversold with support at 32.15. Outperformed the market
XRT (Retail) Nice attempt to firm but not enough to get above the 50 DMA which means like everything, vulnerable still
IYT (Transportation) Looks double toppish with 91.00 a possible neckline
IYR (Real Estate) Got to 64.18 after I wrote over 64.20 this gets exciting. Right now, market's best hope to hold up
USO (US Oil Fund) Oversold so unless it looks like it could return back above the 200 DMA, would leave this alone
OIH (Oil Services) Inside day and still oversold with room for a good short covering rally
XLE (Energy) Inside day and looking similar to OIH
TBT (Ultrashort Lehman 20+ Year Treasuries) Watch 18.05 again
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