July 31, 2012
Mish's Daily
By Mish Schneider
For now, while we await the FED meeting to yield anything tangible other than the usual rhetoric, the market is telling us that the recent rally was to resistance, and even with the positive phase, euphoric calls for new highs are premature and right now unwarranted. Question now is whether or not this couple of days of digestion with low volume will offer support near the lower and positive sloping fast moving average in the S & P 500.
S&P 500 (SPY) 136.65 is low of the day it gapped higher. Now support to hold
Russell 2000 (IWM) Never gapped higher and has been a concern throughout this whole recent rally. Will remain defensive unless it breaks 80.00
Dow (DIA) 127.95 is the gap low to hold now. Back through 130 would be encouraging
NASDAQ 100 (QQQ) Inside day. 65.31 remains the number to clear and 64.00 the number to hold.
ETFs:
GLD If this can get to 155 and hold, will look for a fresh buy opportunity
XLF (Financials) 14.85 last swing high.
IBB (Biotechnology) Closed out the month keeping the longer term uptrend intact, but the nearer term looks like more correction if breaks 133.53
SMH (Semiconductors) Hammer candle under the 200 DMA.
XRT (Retail) Support down to 58.48 the 50 DMA.
IYR (Real Estate) Still holding 65.20 which means beneath will also be vulnerable.
USO (US Oil Fund) 32.20 next support after island top
OIH (Oil Services) Back under 200 DMA
XLE (Energy) Holding the 200 DMA provided 69.30 holds
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