December 8, 2011
Mish's Daily
By Mish Schneider
And just like that, no more overbought conditions in the indexes! While the EU dance around with one another, let's look at my favorite indicators:
SPY: Bye bye 200 DMA for now. Hello the Exponential Moving Average. No change of phase (needed 2 closes above the 200 DMA therefore, still in recovery.) The slope on the underlying 50 DMA still up. Distribution Day in volume and island bottom intact.
QQQ*: Could say the Viagra wore off the last 20 minutes of the session when it failed beneath the prior day low. There is indeed a Golden Cross (when the 50 crosses above the 200 DMA) now in spite of the selloff, which could mean if 56.00 holds here, NASDQ is back in the saddle.
IWM: 2nd Distribution Day in volume with the island bottom and recovery phase intact. Then again, this never even got close to the 200 DMA. Back to looking at 71.25 to hold with a return move over 73.65, a good sign.
ETFs:
GLD Dizzying. Looks bad, looks good, and looks bad again. Not surprising since this is trading on hope, fear and greed. I started this week negative. Now, ending the week the same way if breaks the 50 DMA.
XRT (Retail) 51.30 support. Over 53.00 now can resume move up.
SMH (Semiconductors) Began the week watching 29.50. Ending it the same way.
XLF (Financials) Not overbought anymore. 12.70 then 12.45 key support.
XLE (Energy) Amazing how it brushed, but unlike the other sectors, failed to cross the 200 DMA. 67.40 the 50 DMA to hold next.
IBB (Biotechnology) 99.75 the 200 DMA.
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