Overbought; So? $SPY $QQQ $IWM

March 20, 2012

Mish's Daily

By Mish Schneider


The Relative Strength Indicators on the weekly charts in S&P 500 (SPY) and NASDAQ 100 (QQQ) are clearly overbought which brings the top pickers out of the woodwork and except for some sprinklings of excitement here and there, makes the current rally as exciting as watching paint dry.  Russell 2000 (IWM) and The Dow (DIA) are not overbought, which is why we switched to trading IWM last week, waiting for 83.30 to penetrate, which did not disappoint.

NASDAQ (QQQ) I have nothing new to write. If you are fading, well, hope you have deep pockets; if you're long, no signal to exit; if you are aside, why?

S&P 500 (SPY) 142-144 target although if breaks 140, could be in for some correction.

The Dow (DIA) 131.60 held with today's low 131.78. 134-135 target unless that level breaks. Then, possible correction in store.

Russell 2000 (IWM) 87.00 reasonable target unless fails the 83.00 level.

ETFs:

GLD Subs: Looking for a short entry after the test of the 160 EMA. But, first must fail S1 160.77 and not cross 163.40.

XLF (Financials) Risk now unmanageable

IBB (Biotechnology) 122.45 last swing high

SMH (Semiconductors) Took out 35.49 the recent high-hopefully, you didn't fight it

IYT (Transportation) Moved to 96.22 and then closed lower. Overall chart still looks strong.

IYR (Real Estate) 63.00-64.00 still a target.

XRT (Retail) Small possible correction which these days occurs in a day.

USO (United States Oil Fund)Tried to clear 41.36 resistance but closed below. A strong open would be a sign of more upside

XLE (Energy) Over 75.00 now so should see more.

TBT (Ultrashort Lehman 20+ Year Treasuries) It's the bottom all right, but hard to buy up here if not already in

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