November 20, 2012
Mish's Daily
By Mish Schneider
S&P 500 led the session-gapping up and rallying in a controlled fashion throughout the session. The volume was good, clearly not at Friday levels, but just under average. Most important is that it cleared the 200 DMA. The other 3 indexes have lots more to go before we talk about the 200 DMA. These diversions never cease to fascinate me. Will NASDAQ after a very impressive day in AAPL and GOOG carry on? Was SPY the first to clear with the others on its heels? Or, will the leaders run out of gas and bring SPY back to its 200 DMA knees? And, all this with a shortened trading week! One thing to note-market internals flagged bullish.
S&P 500 (SPY) 139.25 11/13 high now to clear and has to hold the 200 DMA to not look like a one day wonder
Russell 2000 (IWM) Still has lots of work to get it back to the 200 DMA. Like to see 79.00 hold.
Dow (DIA) Accumulation day again today in volume. Stopped right at the fast moving average which now has to clear
NASDAQ 100 (QQQ) Strong end after big gap higher and although volume not as strong as Friday's, price action suggests this can continue to rally. 63.30 is a support level and 63.87 last week's high to clear.
ETFs:
GLD 167 the fast moving average is the area to hold
SLV The 50 DMA is very close indeed. Today's gap low should hold
XLF (Financials) After Friday's visit to the 200 DMA, now has to hold 15.45 and clear 15.63, then the 50 DMA to keep confidence.
IBB (Biotechnology) 131.00 support to hold but first with a doji candle, 133.40 is pivotal
SMH (Semiconductors) Still lagging. Has to clear 31.15 but really the 50 DMA overhead to be a real contender
XRT (Retail) Nice bounce off of the 200 DMA and still showing itself as a strong group. 61.25 has to hold.
IYR (Real Estate) Like to see Monday low hold and then still has to close back above the 200 DMA. Still an important group to watch.
USO (US Oil Fund) With tensions building in the Middle East, would certainly not short unless there is a very tight risk
XLE (Energy) Closed back above the 200 DMA with an unconfirmed warning phase. Gap low has to hold. Next resistance, 71.00
TBT (Ultrashort Lehman 20+ Year Treasuries) 60.26 next area to cross.
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