July 6, 2014
Mish's Daily
By Mish Schneider
This week’s evening watches will be prepared by Matt Mullins. Michelle Schneider will return on July 7.
The S&P 500 (SPY), Nasdaq (QQQ) and the Russell 2000 (IWM) once again made new all-time highs, and posted new all-time high closes. The markets were in part fueled by Friday’s positive jobs number. The US economy created 288,000 new jobs last month and the unemployment is down to 6.1% (almost a six year low). SPY and DIA have potential runaway gaps. IWM has an inside day. Pay close attention to which way IWM’s range breaks on Monday. It will likely be an indicator for the direction the other indexes will move on Monday. The market is very bullish, but short term digestion or even a correction will not be surprising as the market continues to climb.
Have a Happy Fourth of July Holiday! Mish will be back on Monday.
S&P 500 (SPY) It made a new all-rime high on Thursday. Gapped higher to form a potential runaway gap.
Russell 2000 (IWM) Inside day.Watch 118.91 as potential support.
Dow (DIA) Possible runaway gap.
Nasdaq (QQQ) New all-time high and all-time high close- again!
XLF (Financials) Beginning to clear recent highs. 23.00 is potential support.
KRE (Regional Banks) 41.30 is the next hurdle.
SMH (Semiconductors) Confirmed the runaway gap and another all time high close. Wow!
IYT (Transportation) Looks string over 148.78
IBB (Biotechnology) Breaking out of compression but getting extended.
XRT (Retail) 88.95 is potential resistance.
IYR (Real Estate) Watch to see if the 50 DMA holds as support.
ITB (US Home Construction) 2 Inside days! 25.27 is the next resistance.
GLD Sideways digestion.
USO (US Oil Fund) Closed the gap. One of the weakest sectors. It looks like it may touch the 50 DMA.
OIH (Oil Services) Needs to clear 58.01.
XLE (Energy) Compressed.
TAN (Guggenheim Solar Energy) Love this longer term. 44.78 needs to clear. Compressing.
TBT (Ultrashort Lehman 20+ Year Treasuries) Now in a confirmed Recovery Phase. 63.92 needs to clear.
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