Still Resting

---

All 4 indexes don't agree. The DIA is looking like it wants to roll over and test Friday's low, but the IWM looks like it wants to go higher. The Q's never went lower and the SPY's are following the DIA - reluctantly.

It was another slow, trendless day. If the markets do not make a significant move by 11:00 in either direction, I think you can expect the same directionless action we've seen thus far this week in the afternoons.

S&P 500 (SPY) Stopped right at 141 (well 140.97). That's still my number for turning more bearish, but the big number is Friday's lows. Expect resistance at 142 and then 142.30.

Russell 2000 (IWM) This turned out to be the best performer today.The levels to watch beyond today's range are 81.86 as resistance, and support the 80.50 level and then 80.11 low from Friday's low.

Dow (DIA) Still the weakest index. Today it was unable to break the 20 DMA, and the 10 DMA is now bearing down on that 20 DMA. If markets get weak I'll look for short trades here. Until this gets above the 131.60 level I see it as a drag on the other 3 indexes. After that there is 130.80 as resistance as well. 130.06 is the low for support from Friday's low. If the other markets are holding up this level will to, but if all 4 markets are falling hard this level will not likely hold up.Next stop is the DMA at 129.

NASDAQ 100 (QQQ) Still the strongest index the key levels are defined by last week's range. As long as AAPL is not falling apart I'd look to buy intraday reversals above 68.20. 68.15 should be good support as its today's low and the 10 DMA.

ETFs:

GLD We now have 3 days within its Thursday range so we could get a significant move in either direction if this range breaks, 162.45 - 161.23. with three days of flat action I think it's time to consider longs on a breakout - 162.45 is the number.

SLV I said it yesterday too - It needs a rest.

XLF (Financials) Sitting under the 10 DMA after a second constructive day of rest. Key level to break on the upside is 15.30, and on the downside 15.00 is the major support.

SMH (Semiconductors) It came right down to the support level I spoke about -32.60. It is also right on top of the June highs, and the 200 DMA so it should hold, but I'll wait for a close over the 10 or 20 DMA before I consider the long side.

IBB (Biotech) Inside day and... As long as this can hold over 135 it looks good.

XRT (Retail) Managed to close over 61 by a few pennies. If it takes out today's high it looks like a good long trade.

IYT (Transportation) I don't see anything here.

IYR (Real Estate) Closed over the consolidation I've been talking about, 65.31. If it pulls back look for support at the 65.30 and 65 level.

USO (US Oil Fund) It still looks bullish, but I feel it's too subject to what happens with tropical storm Isaac and talk of the government tapping strategic reserves. So with the weather and the government moving this market on a whim, I'll just watch.

OIH (Oil Services) Yesterday I said I wouldn't buy weakness and it got weaker. Now I'd just stand aside. If it breaks Friday's low of 40.44 it's got room to drop.

XLE (Energy) Not quite as heavy as the OIH, but I'd still wait and see.

TBT (Ultrashort Lehman 20+ Year Treasuries) It reached the 15.40 objective I've been talking about, a basic way to look for a reversal back to the upside would be to wait for the prior day's high to be broken or even better, closed above. The same is true for the TLT's in reverse. Until then let it continue down, or more likely, consolidate.

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!