October 31, 2011
Mish's Daily
By Mish Schneider
After breakaway gaps, low volume and inside days in SPY and IWM, today filled the gap which takes wind of the sails of the last move up. Not a confirmed phase change from Accumulation to Recovery in SPY until there are 2 closes under the 200 DMA. IWM never got there which makes the midcaps once again, the compelling watch since the gap from Thursday is still intact. An open under 73.58 would look ominous; an open from unchanged to a higher gives reasons to have optimism. No major volume to report, but SPY eked out a Distribution day. Many key reports this week-FOMC, ISM and unemployment.
SPY: The 80 month moving average next underlying support. A move over today's high is a return move over the 200 DMA.
IWM: Broke the gap low from last Thursday, but kept the gap thus far from the high Wednesday 73.58.
QQQ: Not irreparable damage just yet since held support at 57.75. Then, the 200 DMA will be next area to watch.
ETFs:
UUP* (US Dollar Bull) Gapped higher indicating a possible island bottom from last Thursday and Friday's action but faces resistance at the major moving averages.
GLD Back to warning phase after failing the downward sloping 50 DMA on the lower open.
SLV (Silver) Followed through on death cross with 32.00 next area to test.
FXI (China) Left a possible island top after never proving itself last week.
TLT (20 Year Treasuries) Resumed the bull phase today.
XLK (Technology) 25.50 the 200 DMA
SMH (Semiconductors) Did not hold the breakaway gap but, did hold the 200 DMA.
IBB (Biotechnology) 97.00 support after watching this sector lag behind during last week's rally.
XLF (Financials) Broke 13.68, testing 13.45, the area it broke out from. Under that level looking at 12.90.
OIH (Oil Service Holders) 126.57 the high before the breakaway gap.
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