May 14, 2014
Mish's Daily
By Mish Schneider
Nothing From Nothing Billy Preston
Bears and bulls frustrated-perhaps the Wolves of Wall Street will fare better tonight for the full moon!
Back to an unconfirmed warning phase in NASDAQ. The small caps continue their distress. The 200 DMA may not mean as much as the low from May 9th 108.28. The Dow has a possible reversal top after Tuesday’s shooting star pattern and the S&P 500 pretty much the same.
The flight to rates continued as it’s in the FEDs/Governments interests to keep rates low and continue to "monetize" the debt. Of course, if inflation starts to show up, that will destabilize the current FED rates equilibrium.
And losing control of rates because of inflation would not surprise me in the least.
So, until then, noise prevails, along with a trading range which supports the recent low volatility and the nominal fear of a major move down.
S&P 500 (SPY) 188.35 next point to look at
Russell 2000 (IWM) Unconfirmed phase change to distribution
Dow (DIA) 165.45 next point to hold
Nasdaq (QQQ) Pretty much closed around 87.90 key support, making this the best place to look Thursday
XLF (Financials) unconfirmed phase change back to warning-remember, everything needs a second day to confirm
SMH (Semiconductors) Low volume unconfirmed phase change back to warning-remember, everything needs a second day to confirm
IYT (Transportation) Reversal candle possibly or just that digestion we anticipated
IBB (Biotechnology) Back in 2010, the rally started here. Maybe, this will take some leadership again. Maybe
XRT (Retail) Distribution day in volume and phase
IYR (Real Estate) Didn’t confirm the reversal candle so still looking okay
GLD Reconciled to the upside-question is will it stay there?
XLE (Energy) Doesn’t look done moving up
TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs closed below 113.10 the May 2nd high so maybe this is still working a top-
IFN (India Fund Inc.) 23.49 the 2014 high
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