August 8, 2011
Mish's Daily
By Mish Schneider
SPY Finally, we can start to look at the weekly RSI and say we are oversold. The daily RSI has been different, oversold for quite some time now. And of course just because the weekly RSI is oversold, I have seen many stocks with the same indication continue lower. Another big volume day as well. Now, we are still pretty far away from the point where one can say the bounce is here. Unless we see an intervention..
DIA The 200 weekly moving average is 107.15.
QQQ Still not oversold on the weekly RSI but real close.
IWM Broke the 200 weekly moving average at 65.60. Even more oversold than SPY on the weekly. Back over the moving average perhaps we can look at a rally.
ETFs:
GLD I wrote over the weekend about the power of a bearish engulfing followed by an inside day. Once it gapped higher today, was a classic Opening range breakout buy with a perfect risk. Now, 165.38 support.
SLV Try to rally with GLD, but never cleared previous day high. The slope on the 50 DMA still positive but with a sloppy chart, a declining slope on the 10 DMA and positive pivots, not a great short now unless it breaks 37.42.
All of the ETFs are so incredibly oversold yet not signaling any reversal. A few like IBB SMH IYT are still above the 200 weekly moving averages so are the best ones to watch for a sign of a relief rally. IYT is the closest to the 200 weekly at 78.05.
FCG-a much better barometer for Natural Gas-under the 200 weekly moving average now at 18.56.
TLT We know rates cannot go to zero, at least we do not think so. Still watching for this to top out, but not fighting the trend for now.
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