September 25, 2012
Mish's Daily
By Mish Schneider
Nasty yet an oversold 2-day Relative strength indicator in many instruments. Also, a distribution day in volume. The weekly and monthly RSIs are not oversold. More important, is that AAPL dropped precipitously and GOOG might have had a key reversal today. Giants make big bangs. Overall, since been writing about the disturbing action in financials, semiconductors and transportation, the now, the risk on the short side is too great. Would wait for market to find a wall of support before jumping back in. Factoid-market is beneath the price it was before QE3.
S&P 500 (SPY) Unless gets back above 144.66, could see test of 143.54.
Russell 2000 (IWM) 2 weeks ago I found the clearance of the old 2012 high intraday with an ensuing close beneath troublesome. Troublesome indeed. After the doji day Monday, this dropped to test 83.70 support and fast! Back above 84.45 would be a relief.
Dow (DIA) 133 big area of support
NASDAQ 100 (QQQ) Dropped right to its next support at 68.90 after it gapped under the fast moving average Monday. Second distribution day in volume in last week and oversold on daily RSI. Let's see what happens at 68.00
ETFs:
GLD Under 170, next support 164.
XLF (Financials) Broke 15.71. 15.50 then 15.20 next areas
IBB (Biotechnology) With 3 trading days left to the month, watching to see if hold the close of last month considering it has done that all but one time this year
SMH (Semiconductors) 31.32 July low before the rally. Today's low 31.30. Let's see if it can hold here
XRT (Retail) Stayed out of its way 62.17 an area to watch
IYR (Real Estate) Never came close to clearing the 50 DMA. Seriously oversold now
OIH (Oil Services) 40.40 the 50 DMA
XLE (Energy) 72.75 support
TBT (Ultrashort Lehman 20+ Year Treasuries) Oversold and near the 50 DMA.
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