October 18, 2011
Mish's Daily
By Mish Schneider
Now 5th Accumulation day in volume in QQQ. It also tested the 200 DMA and held. All the leaders were down, creating yet another divergence on this rally. AAPL earnings disappoint. SPY managed an accumulation as well and since Friday, with an upward sloping moving average and overbought corrections, signaled the correction was coming, although only a one day correction took a lot of traders by surprise. Energy, (XLE) featured in last night's daily, led. Financials (XLF) is looking at 13.05 (déjà vu all over again.) SPY had a late August high of 123.40. Today's high 123.50 and the 160 EMA at 123.55. After bullish engulfing candle, important area to get through, with room to upside if does so.
ETFs:
XLK (Technology) 25.50 the 200 DMA. 26.04 last week high.
SMH (Semiconductors) 30.63 last week's high with an old gap to fill at 32.00. Looking at 30.00 pivotal number
IBB (Biotechnology) Comparatively behind semis after a beautiful test and hold of the 50 DMA. Through last week's high looking at the 200 DMA overhead. 95.50 would be a good place to hold.
XLF (Financials) Over 13.05 clears last week 's high and the 70 EMA. Then, could get more excited about this sector
OIH (Oil Service Holders) 121.80 now the 50 DMA to clear. 117 pivotal.
XLE (Energy) 68.80 next resistance. 69.64 August high. Another one that held the 50 DMA today.
XRT (Retail) Back over the 200 DMA. If this is a bottom, could see big move to 58.00. Must continue to close above 50.00.
XHB (Homebuilders) August high 15.41 which was tested and closed beneath. Eye on that level after big candle day.
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