April 2, 2014
Mish's Daily
By Mish Schneider
Song: Aretha Franklin
The S&P 500 closed on new highs for 2014 along with the Dow! Now the question on everyone’s mind-is this for real?
After all, 2-3 times so far this year, it looked like a melt-up coming, only to see it met with dried up volume and selling.
My guess is that by the time NASDAQ and the Russell 2000s see their way to the 2014 highs (if they do) SPY and DIA will look overbought. But, that is a guess. For now, a round of good economic numbers helped with the big scary jobs report due out Friday.
One thing for certain, the financial sector held where it needed to with the rates firming from the lows.
S&P 500 (SPY) Up 4 days in a row-that probably means digestion ahead of Friday’s report
Russell 2000 (IWM) What did the big tomato say to the little tomato? Catch up!
Dow (DIA) Another one suspect could digest on Thursday
Nasdaq (QQQ) 88.50 is the support to hold
XLF (Financials) Not at the highs but really really close
SMH (Semiconductors) A bit overbought so resting
IYT (Transportation) New highs as I suspected for this group
IBB (Biotechnology) Unless this clears 245, still vulnerable with a break of 238 trouble
XRT (Retail) Consumer confidence is alive and well
IYR (Real Estate) 68.85 is the real place now to cross but this has been better lately than how the year began, even before the market came back
GLD 125.50 or 121-what will this see first?
USO (US Oil Fund) Unconfirmed bearish phase but not reading too much into that yet
TBT (Ultrashort Lehman 20+ Year Treasuries) 70.15 should be resistance
UUP (Dollar Bull) Closed at 21.50 first time since late February-good point to watch
KRE (Regional Banks) The strong, silent type
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