June 17, 2012
Mish's Daily
By Mish Schneider
Low volume and great price action ended the week, clearing the May 29th high in S&P 500 and in the DJ Industrial Average ETFs handily. However, the Russell 2000 and NASDAQ did not. Since I like the trading bubble yet love the drama, by the time you read this, the Greek election will be in gear, so my overall end of week thoughts revolve mainly around the market leaders, AAPL, AMZN, GOOG (AMZN chart most interesting of the bunch) that still have to prove themselves. Although there have been many stocks on new highs such as Edwards Life Sciences (EW), Family Dollar Stores (FDO), Equinix (EQIX) to name a few, sustainable rallies typically have to include the leaders, the financial sector (XLF) and Semiconductors (SMH). It's on these areas my eyes will be focused.
S&P 500 (SPY) 133.50 closest support and the 50 DMA closest resistance.
Russell 2000 (IWM) Although percentagewise, best performer, chart pattern remains the weakest of the indexes. Has to hold 76.00.
Dow (DIA) The winner on the tortoise race to the 50 DMA.
NASDAQ 100 (QQQ) 63.15 is the 5/29 high to clear. A gap above and time to look at the 50 DMA overhead as next point of resistance. But, a close above that level and will also look more like the inverted head and shoulders analysts have been writing about.
ETFs:
GLD Back in recovery phase and not so easy to sit with
XLF (Financials) YAY-got my close over 14.30 the weekly moving averages! Now, unless it fails beneath 14.20 on a closing basis, bias is long
IBB (Biotechnology) All-time highs back in the midst unless it breaks 122.85
SMH (Semiconductors) Came back strong. Over the 200 DMA a follow
XRT (Retail) Eyes on this sector since as a former 2012 leader, now underperforming
IYT (Transportation) Could not clear 91.92 the 50 DMA and underperformed. Always good to have the whole picture.
IYR (Real Estate) Not surprising to see this sector over the 50 DMA. Have not doubted the bottoming action here
USO (US Oil Fund) I don't mind lower oil prices
XLE (Energy) 66.45 next hurdle
Every day you'll be prepared to trade with:
