Horse Sense.... Keeps It From Betting on People

---

Excerpted quote by W.C. Fields

If one un-knew coming into today, sat and listened, then one would have been reticent to load up considering that while the small caps and NASDAQ made new highs earlier this week, the S&P 500 did not, while the Dow languished.

Speaking of the Dow, it touched down and held the 50 simple daily moving average although broke the important 2-week into the calendar year low.

The Real Estate, Homebuilders, Gold, US Oil Fund, Transportation all held up well or outperformed. Certain Commodities have also rounded the corner-all of the above, interest rate sensitive groups.

The Chinese New Year, almost upon us, celebrates the Year of the Horse. However, thus far, we can take that one step further and call this year “The Year of the Horse of a Different Color.”

S&P 500 (SPY) Holding the 2 week low, but flirting with the 50 DMA. If bulls, not horses nor bears are around, they need to come out to play on Friday

Russell 2000 (IWM) Maybe not so much a winner, but certainly with NASDAQ, the neck and neck (yes will squeeze whatever I can from the horse metaphor) for the 2 most likely to succeed in holding everything steady

Dow (DIA) Really, have to see this bounce

XLF (Financials) Rotation into regional banks have put this group under the 2-week low-touched the 50 DMA and bounced marginally

SMH (Semiconductors) Not running here right now, but I will say it tested and held in a good spot on the daily

IYT (Transportation) I like when this group does well, but it’s not enough to keep everything sturdy. Just enough to keep us from getting too negative

IBB (Biotechnology) Even a fearless leader has to take a break

XRT (Retail) wouldn’t necessarily buy now, but a bounce is not unexpected to around 83.75

IYR (Real Estate) Started to think this might be doing more than just bouncing-good be a sleeper for 2014.

XHB (Homebuilders) Inside day which will make this a fave for tomorrow to follow one way or another

GLD 119 amazing support and now, this is signaling a near term buy

USO (US Oil Fund) Confirmed recovery phase

XLE (Energy) Back to an unconfirmed warning phase

XOP (Oil and Gas Exploration) In a bull phase, but fell to the pressure

TBT (Ultrashort Lehman 20+ Year Treasuries) So much for a bounce off the 200 DMA-well under it now

UUP (Dollar Bull) Back to unconfirmed bearish phase

KRE (Regional Banks) Like to see this hold today’s low

For more detailed analysis join me, along with hundreds of other subscribers, at Mish's Market Minute and get my daily trade picks, trade alerts, training videos, and exclusive analysis tools. Sign up for Mish's Market Minute now and get a free 2 week trial!