December 2, 2013
Mish's Daily
By Mish Schneider
As the week began we had 2 technical patterns on our minds. First, the possible reversal candles in the indices from last Friday. Second, the volume as a main feature to show which way this market would go in the near-term. Looking at the small caps or Russell 2000s, both scenarios played out. The reversal candle from last Friday is in place with next support 111.00 or exactly where the recent ran up began from. Volume was not above average; however, did exceed significantly the volume from last week to post a distribution day (or when the volume exceeds the volume of the day prior and the close is negative.) Gold, which I have been very negative on as readers of this daily can attest to, sank below a major monthly moving average. Interest rates firmed which clearly had its impact. And, the other “tell” Real Estate, also closed on new 60-plus day lows. Maybe Santa is getting ready to trade his sled in for the new Mercedes SL in that hot red color, but if he is going high tech-he better hurry up!
S&P 500 (SPY)180.12 area now key support if this is to find its footing
Dow (DIA) Actually broke the fast moving average which means unless it can hold 159.50 and run back over 160-trouble
Nasdaq (QQQ) Joining the others in what could be its reversal candle-one trading day later
XLF (Financials) 21.26 the old 2013 high is the support to hold
SMH (Semiconductors) Couldn’t clear the 2013 highs from October and now has to revisit 40.80 to see if it can muster some strength
XRT (Retail) 87.70 some support if good
IYT (Transportation) Also a possible reversal candle
IBB (Biotechnology) Back in its own world and halfway into the projected move-expecting digestion though if the market is heavy
IYR (Real Estate) Unless this clears 63.50 could be seeing 60.00 around the corner
XHB (Homebuilders) The 50 DMA is key here now
GLD Gapped down and kept going south-looking at recent lows as next support
USO (US Oil Fund) Has an island bottom as long as 33.24 holds. Needs to clear the fast moving average
OIH (Oil Services) In the warning phase, 47.50 has to hold
XLE (Energy) Inside day.85.60 the 50 DMA
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