Stock Indexes: Inside Day Low Volume

October 19, 2011

Mish's Daily

By Mish Schneider

Inside day in all indexes including in a couple of sectors/groups IYT (Transportation) and EWZ (Brazil). SPY QQQ etc all had lower volume so no troubling patterns there. Generally, traders follow the range break of an inside day.

The leaders were not happy. But are these key reversals or just a way of working off the overbought condition? Typically, APPL needs a couple of days after earnings to digest and show true colors. Relative to market performance, Energy (XLE) was one of the strongest groups. Alternative and domestic energy policies (or lack thereof) as well as foreign dependency all really big topics these days. XRT (Retail) was strong as well.

SPY: Last night wrote about 123.50 area. Still a powerful level to clear. 120.00 support to hold

DIA: 117.03 August high. 114.25 support.

QQQ: 56.30 the 200 DMA. 57.00 pivotal, today's high 57.85 with an inside day.

IWM: 68.60 nearby support. Through 71.15 looks good. Then need a close above 71.34 August high 73.89 next with the 160 EMA at 74.28.

ETFs:

GLD (Gold) Everyone is waiting for this to collapse. I find it interesting that after a humongous move, it 's consolidating at the 1600 level (pretty darn high) in cash. When GLD wakes, we will know.

XLK (Technology) Broke 25.50 the 200 DMA but needs 2 days below to confirm the phase change from Accumulation to Recovery.

SMH (Semiconductors) 30.63 last week's high with an old gap to fill at 32.00. Looking at 30.00 pivotal number.

IBB (Biotechnology) 94.00 the 50 DMA support. Through 97.50 clears the 160 EMA.

XLF (Financials) Over 13.05 clears last week's high and the 70 EMA. 12.45 daily chart support.

XLE (Energy) The 160 EMA next resistance. 69.64 August high. 64.45 underlying support.

XRT (Retail) If this is a bottom, could see big move to 58.00. Must continue to close above 50.00.

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