December 14, 2011
Mish's Daily
By Mish Schneider
Seeing a lot of oversold indications on the 2-Day RSIs as NASDAQ (QQQ) and Midcaps (IWM) as both indices fill gaps to negate an island bottom whilst S & P 500 (SPY) did not. Volume was lighter than yesterday's. The market is also about midpoint from the 11/25 low and 12/07 high. The financial sector (XLF) held up remarkably well. The metals (GLD and SLV) sharply declined.
SPY: 121.00 is the top of the candle from 11/29 before the gap higher on 11/30. Today's low 121.47. 123.00 is resistance and under today's low 119 next support.
QQQ: 55.60 resistance as we confirm back into a distribution phase. But I certainly would not rule out a rally as we end the week nor would I rule out a further drop to 54.00. If that sounds uncertain, yeah it is.
IWM: Today's high corresponds with the upwardly sloping 50 DMA so if clears, nothing would surprise me. Otherwise, we got a return to a weak bear phase with next support 69.00.
ETFs:
GLD Oversold. Watch the 200 DMA.
XRT* (Retail) Closed on the 200 DMA and did not change the phase from bullish-so calling it best one to watch if market firms for buy opportunities.
XLF (Financials) Incredulously watched the 12.45 low from Tuesday and now today hold. Equally incredulous is that an island bottom still exists. A move over 12.80 will bring in buyers. A break of 12.45 and 12.25 will be touched quickly.
Every day you'll be prepared to trade with:
