March 7, 2014
Mish's Daily
By Mish Schneider
Song: John Mellencamp-Tonight’s Daily Dedicated to Bob Lang-explosiveoptions.net
Another low volume day that continues to support the possibility of a blow off top that occurred on Tuesday in the small caps, Russell 2000. Why? A wee bit of a red close there, the DIA (Dow) that could not confirm it has the power to get through 2014 highs (although it did take out Wednesday’s high) and nothing much more than a quiet digestion day in SPY and NASDAQ.
Stay tuned though-we shall know soon enough! The start of something bigger or a rush to the exits.
Jobs report of course could be a catalyst along with the Ukraine-or for us in the technical bubble, a gap lower in all indices and the confirm, especially in IWM.
What fun!
S&P 500 (SPY) The 188 area is an important area to defend. If it breaks 186.75 is the next support level.
Russell 2000 (IWM) Broke out of the inside day and churned sideways afterwards. 120.58 is the next resistance level.
Dow (DIA) Broke out of the inside day but was not able to clear the resistance from January.
Nasdaq (QQQ) Has been the leader but is looking tired.
XLF (Financials) Very strong. Cleared January highs. Watch those levels for support.
SMH (Semiconductors) Has been strong but is near overbought conditions.
IYT (Transportation) Heading into resistance at 135.93- 1/23 high
IBB (Biotechnology) Sold off today but, is holding a support level. Watch for today’s low to hold.
XRT (Retail) Digesting the recent move up.
IYR (Real Estate) Digesting the move up. It looks like it may re-test the 10 DMA.
XHB (Homebuilders) Beginning to form a pennant formation. Watch the 2014 high (34.27) to clear.
GLD Needs to clear the island top at 130.59.
USO (US Oil Fund) Has an island top-the 200 DMA next test.
OIH (Oil Services) Cleared resistance at the 49 area. Looks poised for a move up.
XLE (Energy) Has to clear 88.48 once and for all
XOP (Oil and Gas Exploration) Inside day. Needs to clear 70.42
TBT (Ultrashort Lehman 20+ Year Treasuries) Gapped higher but, probably best to wait for the jobs report at this point.
UUP (Dollar Bull) watch 21.33 for support.
KRE (Regional Banks) Heading into resistance.
TAN (Guggenheim Solar Energy) Looks great!
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