June 26, 2012
Mish's Daily
By Mish Schneider
The market is wearing shock absorbers. The 200 Daily Moving Average appears to be the cushion while it traverses on uneven roads. Since shock absorbers also have springs meant to dampen spring oscillations, we will call the fast moving average the spring rate or resistance area. A more mundane way to describe the market action right now is low volume, trading range.
S&P 500 (SPY) Still looking for it to cross 132.60 or continuing on the assumption that 200 DMA is next.
Russell 2000 (IWM) Hugging the 200 DMA. A higher open and would think to follow it to upside. Gap lower, trouble
Dow (DIA) Almost cleared an important level-almost. With a DOJI day now, like it over Tuesday highs only
NASDAQ 100 (QQQ) Inside day. Tells me that next move is to follow the way the range breaks.
ETFs:
GLD I got short and then covered on the close for no other reason other than I had no real advantage after a tight trading range and did not want to carry overnight risk. But, negative bias prevails
XLF (Financials) DOJI above the 200 DMA-14.22 next hurdle.
IBB (Biotechnology) Acting well and best news is that it is not overbought
XRT (Retail) Hard to short with the gap lower, but overall, unless it clears 57.80, looks lower from here.
IYT (Transportation) Held the 200 DMA and closed with a DOJI. If pulls away from Monday high, looks much better
IYR (Real Estate) Acting well, but really needs to clear the 50 DMA
TBT (Ultrashort Lehman 20+ Year Treasuries) TLT hammer candle on the fast moving average.
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