January 29, 2012
Mish's Daily
By Mish Schneider
NASDAQ (QQQ) has a pattern worth paying close attention to. New highs Wednesday, followed by a bearish engulfing pattern on Thursday ending with an inside day on Friday. Volume patterns indicate 4 Accumulation days over the last 2 weeks. Yes, the index is at the top of a 10-year channel and overbought on the weekly Relative Strength Indicator. Bottom line? Follow the way the range breaks and don't over think.
Russells 2000 (IWM) Inside day which means follow the way the range breaks and if that means above Thursday and Friday's high, 81.00 still a target.
ETFs:
GLD 175.50-176.50 not unrealistic unless it breaks 167.05.
XLF (Financials) 13.96 was the gap low 2 weeks ago. Watch that to hold. On the upside, 14.65 is the next wall of resistance.
IBB (Biotechnology) Inside day.
IYT (Transportation) DOJI Hammer candle followed by a bullish engulfing pattern. 97.00 in the cards.
XLE* (Energy) 73.17 October 28th high was matched last week. A double top is possible for sure (needs to break 70.70). Then again, over that high, an inverted head and shoulders bottom equally possible.
EWY* (South Korea Index) Inside day and hovering on the 200 DMA.
TLT (20+ Year Treasury Bonds) Like this now over 118.50 to another test of December highs.
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!
Every day you'll be prepared to trade with:
