August 7, 2012
Mish's Daily
By Mish Schneider
Still low volume, however, a bit better than Monday's in all indexes which means an accumulation day all around. Not much else to add other than that price counts too, especially when in line with the phase.
S&P 500 (SPY) Possible shooting star candlestick formation last 2 days. along with weekly RSIs overbought just as the price has come incredibly close to the 2012 high. Would expect some selling under 140 and perhaps another test of 138.49, Friday gap low.
Russell 2000 (IWM) Cleared but could not close above 80.00. However, if 79.00 holds, then could see a stronger return above 80.00 next time
Dow (DIA) Possible shooting star candlestick formation last 2 days here as well. That means under 131.15, should begin to bring in sellers.
NASDAQ 100 (QQQ) Overbought now which also supports a reason for a correction or better yet, digestion.
ETFs:
GLD Inside day.
XLF (Financials) Also has those shooting stars on the daily chart. 14.85 has to hold with room down to 14.66
IBB (Biotechnology) As this rested, may be the first place to look for a new buy entry
SMH (Semiconductors) Seeing shooting stars here as well, but with overbought RSIs would expect correction regardless
XRT (Retail) This is either a double top at 60.86 or a point to clear after some digestion occurs.
IYT (Transportation) Here is our designated driver again. Still struggling at the 200 DMA
IYR (Real Estate) This could be shades of things to come-as one of the big leaders of 2012, lagged last couple of days. Although not too concerned unless it breaks 63.35
OIH (Oil Services) 39.60 the 200 DMA level to hold
XLE (Energy) Although a bit overbought, the long term trend has changed to positive which means look for dips as buy opportunities
TBT (Ultrashort Lehman 20+ Year Treasuries) Cleared the 50 DMA. Now, has to do it again to confirm phase change.
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