Drama Is Life With The Dull Bits Cut Out

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Quote: Alfred Hitchcock

First, I would like to offer congratulations to the Retail ETF that finally made it over the 200 DMA creating an unconfirmed phase change to warning! I also have to give a high five to NASDAQ, Biotechnology and Semiconductors, once again making new highs.

Next, I’d like to offer my condolences to the Transportation ETF that could not hold the 50 DMA thereby returning to an unconfirmed Warning Phase.

Then, I’d like to give honorable mention to the Dow, which although sold off, its ETF (DIA) had an inside day or a “pause” in the action (a bit too close to the 50 DMA which could be troublesome), but for now holding in its Bullish Phase.

Finally, I would like to cajole the SPY which came 50 ticks within the 2013 highs and closed basically unchanged.

Put this all together and what we have is more dichotomy than one can shake a stick at. We came into this week looking for a melt up just around the corner. No reason to change that prediction just yet, especially given the low volatility and volume. But, where’s the drama?

S&P 500 (SPY) A short trip to 184.94 the 2014 highs, which should happen soon before we hear double top!

Russell 2000 (IWM) 115.74 is a key point of resistance to take out. 114 now key support to hold

Dow (DIA) Inside day with 160.75 super close as the line in the sand 50 DMA. This really needs to muster steam from these levels seeing 162.50 as the next overhead point to clear

Nasdaq (QQQ) New highs, overbought

XLF (Financials) 21.50 key support with 21.87 next resistance.

IYT (Transportation) Broke the 50 DMA again and now needs to show direction either heading back over 130.15 or continuing lower

XRT (Retail) Unconfirmed phase change to warning with 81.65 the 200 DMA to defend

XHB (Homebuilders) Was this the dip to buy? 31.90 support to hold

GLD Confirmed the change over the 200 DMA, first time since exactly one year ago.

USO (US Oil Fund) Base in place

OIH (Oil Services) Looks good here

XLE (Energy) Confirmed bullish phase

XOP (Oil and Gas Exploration) All these sectors are overbought but could easily get more overbought

TBT (Ultrashort Lehman 20+ Year Treasuries) 70.80 s key moving average

PHO (Power Shares Water Resources) The highs 26.41

FXI (China Large Cap Fund) 36.45 point to clear

TAN (Guggenheim Solar Energy) Crossing the weekly moving average

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