Strong as Dull Bull $SPY $QQQ

February 22, 2012

Mish's Daily

By Mish Schneider

Other than a lot of divergence with commodities leading and Biotechnology, Real Estate and Transportation lagging, the overall indexes were rather unremarkable.

S&P 500 (SPY) Closed right around the May 2011 high. Volume on par with Friday. Not too much new-no reversal-just more of the same-strong as a bull but a dull one nonetheless.

NASDAQ (QQQ) Most remarkable possible indication is the match of last week's high when it had the big distribution, nasty bear candle day. And that will only remain a remarkable feature if it takes it out on the upside, or fails last week's low for confirmation of a correction.

Russells 2000 (IWM) The only index that almost failed the 10 DMA, but wound up closing on it which means, not much of a correction and quite possibly, considering the other 2 indexes, a good point to jump from.

ETFs:

GLD Got long on the early strength, although locked in profit, kept a small position. 171.23 the high from early February. If clears, looking at 175 area next.

XLF (Financials) As long as 14.70 area holds, seems pretty certain to take out the 200 weekly moving average at 14.89.

XRT (Retail) Will have stop tomorrow under 57.44.

IBB (Biotechnology) We can call today fatigue for sure. Was a good daytrading short under 118, and quite possibly the end of the move. Need more evidence of that.

SMH (Semiconductors) Under last week's low (34.10) and one could say that last week's reversal after a new multi-month high is one to be respected.

IYT (Transportation) Touched the 50 DMA at 91.77 and held it. At 90.85 area, especially if then oversold, will look at again unless it begins to strengthen from here.

IYR (Real Estate) Support at 60.00 and if holds and firms, could still be ok.

USO (United States Oil Fund) Great move from when we first featured this ETF.

MOO (Market Vectors-Agribusiness) cleared recent highs 53.45 and closed just shy of it. Like to see 52.75 hold.

TBT (Ultrashort 20+ Year Treasury Bonds) Waiting to see if it can get back over 19.90.

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