September 6, 2013
Mish's Daily
By Mish Schneider
Low volume digestion day with the Jewish New Year and ahead of all the potential storms-Syria, the Fed, Jobs report. Nasdaq remains the solo index in a bullish phase, but with the inclining slope of the 50 DMA in the others, and with price so very close to penetrating the 50 DMA especially in the small caps, which would be awesome, seems the direction market wants is higher! All indices formed an inverted Hammer Candlestick formation. Inverted Hammer: Represents a potential trend reversal or support levels. Needs confirmation with either a gap higher or good up day move with volume. What to watch for.
Real estate remains a concern while semiconductors confirmed a bullish phase. Lots of variables at play, so regardless of up or down from here-it should be big either way.
S&P 500 (SPY) Really can make a case here for up or down-sitting under the 50 DMA.
Russell 2000 (IWM) If breaks Thursday low we can probably make a better case for more downside all around. However, 102.50 is a great place to see clear for a strong finish the last quarter of the year.
Nasdaq (QQQ) Inches from 2013 high-so again, a failure could be ugly but a break above-sweet!
ETFs:
XLF (Financials) Came one tick from filling the gap from August 26th low. That could be also telling. Above 19.93 better case for resume really.
SMH (Semiconductors) 37.50 a good point to hold but the 50 DMA would be even better
XRT (Retail) Like to see this over 80.00 as it too is flirting with the 50 DMA
IYT (Transportation) If you examine this daily chart, it had 2 great runs this summer both up then down. Now, it’s slogging along in the middle of the summer range
IBB (Biotechnology) New highs doji day
IYR (Real Estate) 2 inside days. The plot thickens
XHB (Homebuilders) Inside day so also ready to become more decisive for next move
GLD130 key support or could get nasty here again
OIH (Oil Services)Got super close to 2013 highs
TBT (Ultrashort Lehman 20+ Year Treasuries) Has been in an uptrend against an inclining 50 DMA since mid-May. Just saying.
UUP (Dollar Bull) Strong dollar with unconfirmed phase change to bullish
FXI (China) Over the 200 DMA for an unconfirmed phase change to accumulation
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