Shall We Dance? $SPY $IWM $DIA $QQQ

---

Quiet session volume wise, but some of our concerns expressed last week, namely overall weakness in certain key areas, gave the market a red day after last Thursday's exciting close. The only sector of the major ones I write about daily that closed green was Real Estate (IYR). The last few minutes of the session gave the market a bounce, which helped the indexes, particularly the S&P 500 and the Dow from closing with what we define as a slingshot high. The market internals remain positive, which is confirmation that judging a trend's health or weakness from intraday swings can chop active traders up. With that said, NASDAQ did have a marginal slingshot high, which has to be confirmed by more weakness tomorrow. And, with Financials, Transportation, Retail and the Short Bonds all struggling, the anxiety of both bulls and bears was heightened this April Fool's Day.

S&P 500 (SPY) Since it held the fast moving average and bounced off of the lows closing above the low from last Thursday, no reason to believe that this market is due for a big hit. Question, is, what will it take to keep the rally going?

Russell 2000 (IWM) As a major barometer for quite some time now, the small caps closed comparatively much weaker, but held 93.00, a support area in March.

Dow (DIA) Chart looks ok, but still overbought on the weekly Relative Strength Indicator. However, the momentum even near the highs, has waned.

NASDAQ 100 (QQQ) It does seem logical that until AAPL can resolve its issues,NASDAQ will lag. Held 64.45 though which means, not a total disaster if this level holds up tomorrow

ETFs:

GLD 156.80 to 154.00 its established range for now

XLF (Financials) Above 18.30 will renew this sector's pizazz, under 18.00 not so much.

IBB (Biotechnology) Bless its heart-it tried to hold the market up today, but finally gave it up. But, a well-deserved rest more than the top is in

SMH (Semiconductors) Nothing would make me happier than to see this rock out. Instead, it went back into an unconfirmed warning phase.

XRT (Retail) 70.81 is still a potential double top with 68.00 the underlying 50 DMA

IYT (Transportation) Here is another group that has to stay in the game. 108.69 the recent low to hold

IYR (Real Estate) Strong finish to new 2103 highs. Also an important sector, but can't do the job alone

USO (US Oil Fund) The 50 DMA should be support now after today's correction

OIH (Oil Services) Back to unconfirmed weak warning phase

XLE (Energy) Correcting but still overall healthy looking

TBT (Ultrashort Lehman 20+ Year Treasuries) Let's see what happens at 64.25-was defended big time in February

XOP (Oil and Gas Exploration) 59.10 the 50 DMA support level

XHB (Homebuilders) Brick wall at higher levels and now the 50 DMA close by.

UUP (Dollar Bull) Could not close the week above the weekly moving average. About to get a golden cross

For more detailed analysis join me, along with hundreds of other subscribers, at Mish's Market Minute and get my daily trade picks, trade alerts, training videos, and exclusive analysis tools. Sign up for Mish's Market Minute now and get a free 2 week trial!