October 17, 2011
Mish's Daily
By Mish Schneider
The QQQ worked off an overbought condition on a 2-day RSI and dropped on very light volume, although some of the other market internals are still showing overbought. No distribution day, thereby keeping the 4 accumulation days of volume over the last 2 weeks intact, with an upward sloping 50 DMA and no change in phase. Volume was anemic all around, which makes the case right now, for a correction rather than the end of days, which we wrote was inevitable after a dizzying run last week. Today was the clear day to exit most longs from last week. We are mainly back to cash booking huge gains in some of the leading stocks.
SPY: 50 DMA 117.45 Over 121.50 strong
DIA: 111.85 50 DMA.
QQQ: 56.28 the 200 DMA. Over 57.93 strong.
IWM: 50 DMA 68.28. Over 70.16 better
ETFs:
XLK (Technology) 25.50 the 200 DMA. Over 25.90 better
SMH (Semiconductors) No longer overbought. 29.25 support, over 30.38 better
IBB (Biotechnology) Tested 95.25 the low from last week. Over 96.63 better
XLF (Financials) 12.10 must now hold.
OIH (Oil Service Holders) Never performed as well as the other sectors. Rallied to the 50 DMA Friday and failed. Last week's low 112.53. Over 120, impressive
XLE (Energy) Inside day. Over 66.64 would follow. Otherwise, looking at 64.35, the 50 DMA
XRT (Retail) Closed under the 200 DMA 50.10. If returns above last week's low 49.00.
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