July 27, 2011
Mish's Daily
By Mish Schneider
SPY The island top I have been writing about and fearing would confirm-well, thank you government for making it so. Now we have broken the 50 DMA which never got to a neutral let alone positive slope. The long term trend is still intact but clearly lots of damage done today. 131.25 is the 50 DMA. That would be a good point to watch. Otherwise, 129.63 was the last swing low which interestingly happened on July 18th.
QQQ First clue was the open under 59.36, the line in the sand I have been writing about. There is a gap to 57.79 which would be better if not filled. Slope on the 50 DMA still positive. Other numbers to watch for-58.44 and 58.94.
IWM Have also been writing about concern in midcaps since it broke 83.00. Went through 81 support like a hot knife in butter. Stopped at the 160 EMA. Over 81.30 some relief. Otherwise looking at 79.46 the 200 DMA.
ETFs:
GLD-Did not like the action today and even though the overall chart formation is very strong-still looking for more of a correction.
SLV Bearish Engulfing Pattern. Under 38.80 definitely see more downside
XLE**Damage done but still in uptrend. Over 78.36 good sign. Big support 77.09 and gap I do not want filled to 76.74.
IYT First clue to today since earlier this week. 200 DMA at 93.15. Oversold on the 2-day RSI-wouldn't get excited about a rally-probably an opportunity to short-but for now, would not short down here and see if it can move back up to 96.25.
IYR 60 good support especially since also oversold on 2-Day RSI. Looks like 63 for now, double top.
SMH 32.50 the 50 weekly moving average. Big area to watch for either a move above or now resistance.
FXE 142.50 key support. 144 now interim resistance
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