Stairway To Heaven or Highway To Hell?

May 28, 2014

Mish's Daily

By Mish Schneider

Thank you Led Zeppelin and AC/DC

S&P 500 confirmed the breakaway gap with a relatively healthy digestion day-shown perfectly with a doji candle if you are a fan of Japanese Candlesticks. That’s SPY.

NASDAQ, not to scare anyone, could have posted a reversal candle only the volume was so light, it would take confirmation with a second close under Wednesday’s low. So, let’s wait and see.

The Russell 2000s closed under the 50 DMA so back to an unconfirmed warning phase. Finally, the Dow tested and held 166.

Plus, when you read below, the diversity among the sectors remains startling.

We just entered another round of wondering: Will the bough break and the cradle fall or is the kid alright?

S&P 500 (SPY) Has to hold above 190.50

Russell 2000 (IWM) Tomorrow if an up day will come as a relief to many bulls

Dow (DIA) Close to the highs at 167.29, but has to get there-166 minor support

Nasdaq (QQQ) If this was a reversal candle, then we still have to see a close under 90.64 then a break of 90. Otherwise, like with IWM, could have been nothing more than digestion

XLF (Financials) Inside day-no major concerns at this point

SMH (Semiconductors) New high close-yay Semis!

IYT (Transportation) Looks like strong follow through on its breakaway gap.

IBB (Biotechnology) Similar analysis to QQQ

XRT (Retail) Back under the moving averages and so opposite of say, transportation. The Angel-Transportation sector. The Devil-Retail.

IYR (Real Estate) Still strong

ITB (US Home Construction) A definite possible reversal candle

USO (US Oil Fund) What a correction looks like

XLE (Energy) Tight compression last 4 days

XOP (Oil and Gas Exploration) Nice move into resistance

TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs The energizer bunny that one day will die

PHO (Power Shares Water Resources) confirmed bullish Phase if today’s low holds