July 5, 2012
Mish's Daily
By Mish Schneider
Since June 26th, Today (Thursday) was the first sign of perhaps the fun is subsiding, especially in S&P 500 as it closed under key pivots and posted a distribution day in volume. In contrast, NASDAQ had an accumulation day in volume although only marginally closed in the green. Let's face it, a correction would not be the worst thing. Furthermore, there is a lot of room to the downside before the current bull phase is tested.
S&P 500 (SPY) 136.25 a first area of support to watch. Then, 134.85 the low of the gap higher next best support. Would not rule out more upside either, especially if crosses today's high.
Russell 2000 (IWM) Under 81.04 could see 79.10 next support. Not sure I would be chasing it up at these levels
Dow (DIA) 128.25 support then127.45
NASDAQ 100 (QQQ) 64.50 support to hold, then 63.50 big key. Otherwise, more upside not out of the question, but harder to chase as weekly relative strength is high
ETFs:
GLD Hanging onto the 50 DMA after the gap lower. Under 153.80 expect more pressure. Would change bias over 158
XLF (Financials) 14.40 is the support I would like to see hold ending the week
IBB (Biotechnology) Inside day.
SMH* (Semiconductors) Watching carefully since wedged between the exponential and 50 simple moving averages. One I would certainly follow over or under those MAs
IYT (Transportation) Bullish engulfing pattern yet not through last swing high at 94.66. Over that can see 96.00
IYR (Real Estate) If this cannot end the week above 64.90, I would expect more correction. Next best support 63.35 then 62.90
OIH (Oil Services) Inside day.
Every day you'll be prepared to trade with:
