October 3, 2011
Mish's Daily
By Mish Schneider
Two bits of good news, the ISM, Economic activity in the manufacturing sector expanded in September for the 26th consecutive month, and the overall economy grew for the 28th consecutive month. The PMI registered 51.6 percent, an increase of 1 percentage point when compared to Augusts' reading of 50.6 percent. A reading above 50 percent indicates that the manufacturing economy is generally expanding; below 50 percent indicates that it is generally contracting. Although hard to fathom, there is somewhat of an economy recovery. Technically, the picture looks much bleaker.
SPY Took out the August low. Now, market is looking at next support at the last swing low the week ending September 30, 2010, before the FED began injecting money, 106.66. 110.27 was the August low. Will watch that number as resistance with better overhead at 112.50.
DIA Did not take out the 200 weekly moving average at 106.24 with the August low 105.72. Keep an eye on this average as best hope to hold at those levels.
QQQ 52.00 broke now see next support 50.00 (49.93 to be exact). After that the 200 weekly is 45.00. Only a move above 52.30 would look encouraging for the now former leading stocks.
IWM Looking back at 2010, 58.65 area next support. 63.75 overhead resistance.
ETFs:
GLD 162.95 overhead resistance then 165 with move under today's low a good reason to look at a new short.
SLV*Negative phase intact.
XLK* (Technology)Not too far from its 80 month moving average and holding up better than a lot of other sectors.
IBB (Biotechnology) Hopefully, Sunday's featured pick alerted you to short biotechnology and/or a couple of its components (BIIB VRX). What happens after an inside day in a bear phase.
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