June 21, 2012
Mish's Daily
By Mish Schneider
Ode to the now elusive 50 DMA. Volume was not as heavy as it was yesterday. Then again, we have been writing that many investors remain sidelined. Since Friday is upon us, expect a relatively quiet session, low volume and perhaps some digestion holding Thursday's low.
S&P 500 (SPY) Back in an unconfirmed warning phase slicing through the 50 and fast DMAs and closing just beneath the EMA.
Russell 2000 (IWM) 76.00 is the 200 DMA which should hold for Friday at least
Dow (DIA) Broke the 50 DMA of course, but landed on the EMA.
NASDAQ 100 (QQQ) 62.00 is the EMA. 62.95 the fast moving average. At this point, the first place to look should the market firm
ETFs:
XLF (Financials) Besides the QQQs, second place I would look at to hold since landed on the fast moving average. On the other hand, never returned to a bullish phase along with the indexes. Fate uncertain for sure
IBB (Biotechnology) Those interesting candles were ominous after all. Filled the gap from 2 days ago and still the best looking ETF. But, not sure how much that means if the market continues to fall
SMH (Semiconductors) I write about RSI and overbought/oversold conditions if nothing else to illustrate why not to buy or sell when those numbers are extended. Anyone who was long form the 200 DMA, had plenty of chances to get out with a profit.
XRT (Retail) "First place to go if market rolls over for a short" Wow
IYT (Transportation) Would not exactly call today consolidation, but it did manage to hold the 50 DMA
IYR (Real Estate) Landed on the EMA and not as beaten up as many of the other sectors
USO (US Oil Fund) 29.10 2011 low as this now oversold
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