Divergence or Aberration? $SPY $QQQ $IWM

---

The divergence between GLD and the S&P 500 continues with possibility of rates having bottomed. The indexes had a low volume rally, but nonetheless, show no signs yet of this move abating other than a continuing lack of real heavy commitment.

S&P 500 (SPY) Traded up to 137.64 with the last swing high from early July at 137.51. Settled below. Some numbers to watch 136.25 first support then 135.50. There remains a gap overhead to fill at 138.99, first real area of resistance. Remember, tops don't happen simply because people call them-there are sound technical signals to look for.

Russell 2000 (IWM) I like 80.00 now as first area to hold up with the overhead resistance at 80.96 still a factor from July 10^th high.

Dow (DIA) 127.30 first significant support to watch. 129.41 next closest overhead resistance

NASDAQ 100 (QQQ) 63.50 support 64.58 Wednesday high first resistance then, 65.25.

ETFs:

GLD It underperformed the market with an inside day, and no huge rally off of the intraday low. Keeping a negative bias and looking to see what happens at 148.50

XLF (Financials) Unless this breaks 14.50, will continue to be friendly and call this action consolidation

IBB (Biotechnology) Since September 2011, this has made a new high every month. That might be the best indication to watch-the month that pattern reverses.

SMH (Semiconductors) A stunning case of taking out the old lows by one tick and turning around screaming all the way.

XRT (Retail) Not much to say-held the 50 DMA, bounced-let's keep watching

IYT (Transportation) Needs to clear 92.45 and hold Wednesday's low

IYR (Real Estate) Nothing goes up everyday-so this instead paused with an inside day.

USO (US Oil Fund) Watching 34.00 carefully as a place where this could stop its recent run

OIH (Oil Services) Anyone unfamiliar with phase changes-this one was a beauty as it changed from a bear to recovery phase. Now a bit overbought

XLE (Energy) 69.00 the 200 DMA and significant resistance

TBT (Ultrashort Lehman 20+ Year Treasuries) Love to see 15.00 break.

For more detailed analysis join me, along with hundreds of other subscribers, at Mish's Market Minute and get my daily trade picks, trade alerts, training videos, and exclusive analysis tools. Sign up for Mish's Market Minute now and get a free 2 week trial!