January 10, 2012
Mish's Daily
By Mish Schneider
The narrowest range day in the Russells 2000 (IWM) in 194 days. Plus, it closed on the 200 DMA with light volume and an RSI- approaching but not quite, overbought. Now in an unconfirmed Accumulation day and first close over the 200 DMA since late July. The weekly moving average is just overhead, still looking like resistance. Bottom line-what happens when the party starts and nobody shows? How long do you wait for other guests? And at what point if they do not show, do you turn around and head for home?
SPY: 3rd Accumulation Day in volume although still very light. 129.42 was the last swing high in late October, which was challenged intraday, but not sustained.
QQQ: Technically, the breakaway gap on January 3rd is still in play with this index in a bullish phase. Other than complete dullness, see no reason that this sentiment has changed.
ETFs:
XRT (Retail) Closed well although one could pass out from the lack of excitement. I figure that after the big move in biotechnology, this is the best bet as next leader, provided it holds over 52.50 area.
XLF (Financials) At least there was some excitement here as I have been writing about this sector as the best indicator for quite some time. We got a breakaway gap now. Let's see if today's low holds.
IYR (Real Estate) Either this was a hammer candle on low volume and the start of a good move up. Or, it is just sitting on the 200 DMA and one big wind will knock it out of its seat.
IBB (Biotechnology) Still Overbought but first one to take out 2011 highs.
XLE* (Energy) Better volume than yesterday's with the move over the 200 DMA. Has room to the October high 73.17.
OIH (Oil Service) Met the target of 121 with a breakaway gap and closed right there.
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