Taking No-Doze

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The key market indexes had a meager early morning sell-off in very quiet / light trading.Critical support is still holding and the overbought conditions are abating with more sideways action.
Tonight’s report will be from both Geoff Bysshe and Keith Schneider as Mish recovers from a nasty Flu. She will return as soon as she recovers. Trade well!

S&P 500 (SPY) This index had a doji day and missed an inside day by a tick. Market internals for this index is still strong.

Russell 2000 (IWM) inside day and strong with a close back above the fast moving average. Today’squiet compression is a good setup for following breakouts.

Dow (DIA) Inside day and still trying to close over 14,000. Negative pivots. Short term bias turns negative below 139 which takes out S2 and the 10 day. Otherwise, we are still in gear and might just be compressing for the big jump over 14000 and all-time highs.

NASDAQ 100 (QQQ) an inside day, small gains with positive pivots was most interesting.

GLD Gold was the standout loser even as unrest in the Mideast spreads. Bad action for what should have been supportive to Gold is indicative of a bearish trend. Who needs the yellow relic when stocks are roaring?

XLF (Financials) This is one of the leading sectors and did not disappoint today as had the best performance of. Assuming the market continues its march up this sector should lead the way.

IBB (Biotechnology) This once leading sector continues to lag and could be putting in a top.

SMH (Semiconductors): 34.00 still a great area to hold.

XRT (Retail) Lots of compression at the highs but as with rest of the market still positive

IYT (Transportation) Closed pretty much on its highs for the year and this sector was and is still one of our favorite picks

IYR (Real Estate) after good news regarding housing prices and supply side issues, this sector is firming up after lagging the market this week. We would be more interested above 68.30 which are new highs.

OIH (Oil Services) The oil services struggled today and closed under the 10 Day MA. A move over 45 on high volume would confirm a long term bottom

TBT (Ultrashort Lehman 20+ Year Treasuries)The long term trend has shifted and this a buy dips market for a long time

XOP (Oil and Gas Exploration) Subs: Watch the 10 DMA now to hold and potential Brick Wall reversal pattern today.

XHB (Homebuilders) Looks toppy and need to clear fast moving average to regain footing

UUP (Dollar Bull) This ETF could be completing a compound bottom

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