February 9, 2012
Mish's Daily
By Mish Schneider
“As he was valiant, I honour him. But as he was ambitious, I slew him.”
William Shakespeare
S&P 500 (SPY) could not clear the July high 135.70 although giving it big high fives for valiant effort. Earlier this week we explored what a top looks like. One indication is an orderly price testing at resistance. Perhaps July high is that price-but then again, only a question right now with nothing yet to indicate confirmation.
Russell 2000 (IWM) First real sign of trouble.
NASDQ (QQQ) When on new multi-year highs, everyone still wondering about the top. Perhaps if QQQs break 61.67-perhaps.
ETFs:
GLD 167.50 support to hold after bearish engulfing pattern.
XLF (Financials) Got real close to the 200 weekly moving average before selling off end of day. As a powerful resistance level nobody can deny (been 5 years since above that moving average). As the top too soon to tell. A weekly close under 14.55 troublesome.
XRT (Retail) If cannot end the week above 57.77 could be sign of exhaustion.
IBB (Biotechnology) Could be a reversal since it made new highs and now sold off. But with an inside day, watch 118.67 to hold or bust.
SMH (Semiconductors) Inside day and holding.
IYT* (Transportation) Under 94.05, this will be yet another sign of more correction to come. Could even be big-to 91.00. But, over today's high, has plenty of room to upside.
XLE (Energy) Do not like to see new multi month highs then a pause that lasts too long. Over today's high though will keep this sector happy.
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