May 10, 2012
Mish's Daily
By Mish Schneider
Most notable feature of the day is the second inside day in NASDAQ (QQQ). With its completely neutral slope on the 50 DMA the warning phase has not accelerated, but at the same time is no longer considered "weak". So, is it any wonder the ranges over the last 2 days have stayed inside and narrow? Based on past patterns, the indicators point to more downside unless the QQQ can get over 64.75 with volume.
S&P 500 (SPY) When I write I prefer to sell rallies, I am hoping for a more substantial one than it had Thursday. But, now that the oversold RSIs are alleviated, if this comes in lower, maybe this was the rally and time to just get short until 132.00
Russell 2000 (IWM) Under today's low, I would expect more selling with next support 75.50
Dow (DIA) Unless this clears 130.50 area, also continues to look weak
GLD A move up to 158 would be a good short opportunity
XLF (Financials) Spent all day above 15.00 then fell at the close trading even lower in the aftermarket. 14.38 back on the table
IBB (Biotechnology) After the inside day, followed through to the upside. Now has to clear 125.20 or could roll over again
SMH (Semiconductors) I expected more. 32.15 support to hold or more downside
XRT (Retail) Tried the 50 DMA and closed beneath. Must continue to move higher or vulnerable under today's low
IYT (Transportation) 91.00 next support
IYR (Real Estate) Tried 64.20 again, but weakened by end of day. Still want to see what happens at 63.00.
USO (US Oil Fund) Must clear 37.05
TBT (Ultrashort Lehman 20+ Year Treasuries) Failed at the fast moving average. 17.70 recent low
Every day you'll be prepared to trade with:
