Just A Little More... $SPY $QQQ $DIA $IWM

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This is beginning to look better! However, my guard is still up and we can’t get complacent. The indexes have held up well since Tuesday’s alarming drop, and are beginning to test higher levels. The Russell 2000 (IWM) and the S&P 500 (SPY) cleared the key levels that I have been writing about since Tuesday. However, SPY was not able to close over 64.19, a recent swing low, even though it traded above this level for much of the day. I will keep an eye on this level tomorrow. IWM needed to clear the 50 DMA. It did so, and closed above it. Nasdaq (QQQ) broke out of its inside day and closed above the 10 DMA. The Dow Jones Industrial Average (DIA) is still the weakest of the four major indexes. It’s next obstacle is 148.50. The market tomorrow will likely be low volume chop, as it is a Friday heading into a holiday weekend. I will focus on trades with high volume to avoid being caught up in the choppiness.

S&P 500 (SPY) Watch for 164.19 to clear and today’s low to hold. Tested and retreated from the 10 DMA Subscribers: Pivots positive.

Russell 2000 (IWM) Closed above the 50 DMA to bring it into an unconfirmed warning phase. Subscribers: Pivots positive.

Dow (DIA) Watch for 148.50 to clear. That level is a swing low from 8/21 and is an important level to clear. Subscribers: Pivots positive.

Nasdaq (QQQ) Broke out of its inside day. Cleared and closed above the 10 DMA. Subscribers: Pivots positive.

ETFs:

XLF (Financials) Watch for today’s low to hold.

SMH (Semiconductors) Climbed back into the range of the consolidation before it gapped down. Watch for the 10 DMA to hold.

XRT (Retail) 78.90 is an important area to clear. It lines up with swing highs from June and the 10 DMA.

IYT (Transportation) Watch for today’s low to hold and the converging 10 and 50 DMAs to clear.

IBB (Biotechnology) Moving strongly. 198.46 is next resistance.

IYR (Real Estate) Holding the downward sloping 10 DMA.

XHB (Homebuilders) Closed under the 200 DMA, after trading above it for most of the day.

GLDTested support at 135.45. Broke down from its inside day.

USO (US Oil Fund)Closed on support from the July high.

OIH (Oil Services)Inside day, after yesterday’s impressive move. Holding the 10 DMA.

XLE (Energy) Inside day, holding the 50 DMA.

XOP (Oil and Gas Exploration) Inside day. Watch how the range breaks.

TBT (Ultrashort Lehman 20+ Year Treasuries) Holding the upward sloping 50 DMA. 78.63 is resistance.

UUP (Dollar Bull) Gapped higher and could not clear the 200 DMA.

EWG (Germany) Subscribers: Now in an unconfirmed warning phase.

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