"Money Often Costs Too Much" $SPY $QQQ $IWM $DIA

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Another Quote by Ralph Waldo Emerson

Island top in S&P 500, which I have been writing about since last Friday, got some legs today. Once the SPY gapped lower this morning, especially after the Venus Fly Trap warning, the writing was on the wall. Now, although the bull phase remains intact, the potential test of the underlying 50 daily moving average seems likely. NASDAQ is much closer to the 50 DMA which also makes sense given the lackluster performance it has had since the year began. The small caps (Russell 2000), which have led the rally up, continue to have the best chance to show the way-either failing at the 93.00 level or returning above today's high and bringing confidence back to the buyers. Cash is the best place to be for the active investor right now.

Dow (DIA) Has room to the March 5^th low 141.69. That was the low on the gap up day that resumed the rally until last Friday. Good area to watch now

NASDAQ 100 (QQQ) 67.50 (the 50 DMA) is key to hold and 69.00 the area to break above

ETFs:

GLD Rallying on fear in the marketplace. Could see the 50 DMA overhead as resistance and if this begins to sell off, would take that as a positive for the overall market.

XLF (Financials) 17.87 is the March 5^th low to watch for

IBB (Biotechnology) Brick wall high in place, but would not count this out as best chance for a comeback if market stabilizes

SMH (Semiconductors) Unconfirmed warning phase with some support at 34.50

XRT (Retail) Like biotech, the best one to watch for a long if things stabilize, or if can hold around the 69.00 level

IYT (Transportation) A move down to 107 would be very tempting to buy. Aside for now

IYR (Real Estate) Best performer today. Hammer candle so one to watch tomorrow for either a move back up or failure to the 50 DMA from here

USO (US Oil Fund) Chaotic chart

OIH (Oil Services) Had a shot but now looking heavier

XLE (Energy) Another sloppy chart here

TBT (Ultrashort Lehman 20+ Year Treasuries) Back to unconfirmed warning phase.

XOP (Oil and Gas Exploration) Correction time since it never cleared the channel on the weekly chart although watch for support around 60.00

XHB (Homebuilders) Brick wall possible after looking so promising

UUP (Dollar Bull) 22.64 key

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