"Pass the Dutchie On The Left Hand Side!" $SPY $QQQ $IWM $DIA

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Frequent and devoted readers: Small caps (Russell 2000s) have been a tell for us for quite some time. Friday, they closed on new highs. But more importantly, as the July 4^th holiday gave me time to reflect on the market and its other signs, it occurred to me that the short bonds (TBTs), the US dollar, and the other indexes (although until Friday were in weak warning phases and now all ended the week in unconfirmed bull phases), were sending a loud and clear signal. This “punchbowl” I’ve been reading about is accurate. The slowly recovering economy, positive jobs report, the move towards energy independence, DOMA, Sep-tapering (kudos to that title creator) along with manufacturers beginning to bring their businesses home- clothing industry namely, this punchbowl is full and spiked! We still have the May 22^nd highs in the indexes to clear, but heck-pass the ladle!
One note: Monday kicks off earnings season with Alcoa first up.

S&P 500 (SPY)Unconfirmed bullish phase.It still has to fill the 6/19 gap to 163.38 with Friday’s high 163.08. All good unless it fails the 50 DMA from here.

Russell 2000 (IWM) Gun to head this will gap up again Monday and has to clear 100.38 the all-time high as well. If not, watch 98.75 to hold then 98.15

Dow (DIA) )Unconfirmed bullish phase.150.50 is the 50 DMA to hold

NASDAQ 100 (QQQ)Unconfirmed bullish phase. Has to fill the gap to 72.68. One to watch with AAPL’s red close on Friday.

ETFs:

XLF (Financials)19.50 pivotal and 20.00 a great breakout.

SMH (Semiconductors) Over the 50 DMA and filled the 6/19 gap.

XRT (Retail) Next hurdle is the 6/19 high 78.89 but been a great leading sector even when the rest of the market was correcting

IYT (Transportation) So close to 112, the 50 DMA making this really important to watch. It has to clear the 50 DMA or like the Russell’s are for the early bulls, this could be for the early bears

IBB (Biotechnology) Some resistance coming up at 183.60 but well done here! Friday’s low support to hold now

IYR (Real Estate)If there is a sector concerned about rates for the time being, it’s this one. However, still watching for a move back over the 200 DMA as a great indication, that news is absorbed.

GLDThis definitely did not like the notion of higher rates. Did hold recent lows by quite a bit so not writing this off just yet.

USO (US Oil Fund)Overbought now but what a move clearing the 200 weekly moving average first time since September 2012.

TBT (Ultrashort Lehman 20+ Year Treasuries) Highest level since March 2012. Will be really interesting to see what the would-be tapering really does to rates and the market longer term

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