October 1, 2012
Mish's Daily
By Mish Schneider
The market began the month and quarter testing the fast moving averages then retreating. Whereas the market internals in the S&P 500 turned positive in the short term, NASDAQ 100 turned slightly negative. The overall trend remains bullish, volume patterns indicate warning and the sectors and groups performed poorly with the exception of biotechnology. Sloppy soup with best advice: Be wary of the market whilst it trades in the middle of the range between the fast and 50 DMAs.
S&P 500 (SPY) Under Monday's low would guess lower in store. Above the fast moving average, assuming it could see 146.
Russell 2000 (IWM) 84.50 resistance 81.50 support.
Dow (DIA) The best performer today wound up closing under the fast moving average. Good one to watch to see if it can return over the fast MA and resume move up
NASDAQ 100 (QQQ) Touched the fast moving average and could be first to test the 50 DMA at 67.60
ETFs:
GLD 174 the area to clear as the intraday trading remains choppy and volatile so close to all-time highs
XLF (Financials) The 50 DMA looms below, especially after the test and retreat from the fast moving average. However, closed in the green which means middle of the range I refer to.
IBB (Biotechnology) 144.60 resistance ahead of the all-time high with a move under today's low reason to believe could see a correction
SMH (Semiconductors) 32.10 and the fast moving average continues to be the elusive area to clear. 31.30 was pivotal last week
XRT (Retail) Also seems to want to visit the 50 DMA unless clears and closes above 63.00
XLE (Energy) Acted ok so not a bad one to watch over today's high.
Every day you'll be prepared to trade with:
