July 25, 2011
Mish's Daily
By Mish Schneider
SPY broke the range of the inside day from Friday in the first 30 minutes, but as suggested was not a short opportunity, instead an opportunity to buy the dip. Now, there is still underlying support at 132.50 area and if 133.80 area holds, could see another attempt to today's highs 134.50. With the market so politically charged, it is wreaking havoc on technical traders. However, above today's high is extremely positive at least for the case of a retest of the recent high at 137.18.
QQQ 59.36 area on a closing basis still key considering it was the recent high until Friday. If that holds, still see the possibility that the leaders such as AAPL, GOOG and now BIDU will rule and the rally will continue. Otherwise, has underlying support now at 58.30. Slope on the 50 day moving average has turned positive.
IWM 83.10 still key support. If it clears 84.30 see a move to 87. Below 83.10 a move down to 82. Right now, the weakest of the three.
While the debt limit has never caused the federal government to default on its obligations, it has at times caused great inconvenience and has added uncertainty to Treasury operations. Certainly we are feeling that inconvenience now. But, the bubble that technical traders try to live in confirm diversion at best-NASDAQ and the earnings of the leaders suggest higher prices. The S and P 500 and midcaps have longer term trends that are positive and shorter term trends that are mixed. For now, watch the stronger sector and groups. It continues to be a stock picker's market.
Featured ETFS:
GLD 158 next area to penetrate. Now, 156.70 today's low support otherwise could see a move down to 155.
SLV 38.75 now key support to hold. Through today's high 39.80 next resistance 40.45
XRT broke 54.45 the low of the last couple of days of last week and the fast moving average. Could see a dip down to 53.70 area. Above 54.75 next resistance 55.30.
IBB at this point, beginning to look like a failure from the attempt at matching the all-time high. 106.45 is the key support.
SMH** impressively held 200 day moving average. Still has not filled the gap up to 34.03. The 50 day moving average comes in at 34.01. Once it fills the gap and gets through the 50 day, especially on a closing basis, next resistance up to 35.36.
IYR the high on July 7 was 63 and last Friday it came real close with a high of 62.95. Today it gapped lower and closed weak. 61.65 is the support to hold.
IYT 97.38 now key support to hold. A move back above today's high will be encouraging.
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