If You Are Walking To Seek, Ye Shall Find

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“Henceforth, we need to see confirmation Thursday and with increasing volatility.” Two reasons I am quoting myself from last night’s daily. One, because I really do love the word “henceforth.” Secondly, because the concept of “confirmation” and “increasing volatility” is one that will keep you out of trouble and falling in love with an opinion.

The Dow climbed back to an unconfirmed bullish phase, NASDAQ negated the possible reversal candle, The Russell 2000s set up a launch pad from its 50 DMA and the S&P 500 although still working a potential double top, seems more likely to resume the melt up possibility.

Therefore, I end the week full circle from how we began- “Tops, like bottoms, tend to be dramatic. Therefore, I am anticipating more upside with the distinct possibility the market experiences (hard to pinpoint when) another run up to new highs with much more exuberance in volume. “Quote from the weekend daily.

S&P 500 (SPY) 184.95 the highs and 181.38 critical support

Russell 2000 (IWM) 112.85 critical support 115.64 this week’s high to clear

Dow (DIA) 162.34 the high to clear with 159.63 key support

Nasdaq (QQQ) Even without AAPL today, managed to hold well near the highs

XLF (Financials) confirmed warning phase, albeit a weak one

SMH (Semiconductors) New highs-nice living in the semiconductor bubble!

IYT (Transportation) One more push will get this back over the 50 DMA

IBB (Biotechnology) A classic example of why we need confirmations a second day

XRT (Retail) Held where it needed to and looking cheap relative to the overall market

XHB (Homebuilders) 2 inside days-big eyes here!

GLD Back over the 200 DMA and looks pretty darn good

USO (US Oil Fund) Overbought and an inside day

OIH (Oil Services) 48.00 resistance with an inside day to watch as well

XLE (Energy) Inside day here as well

TBT (Ultrashort Lehman 20+ Year Treasuries) Through 72.05, now back to looking at 74.00 area

PHO (Power Shares Water Resources) New highs

UUP (Dollar Bull) 21.60 an area to watch

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