January 7, 2013
Mish's Daily
By Mish Schneider
Good news is that despite the down day in the indexes, all held last Friday's lows. As I suspected the tone for the week would be set with today's action, will modify that statement to a degree. Indeed longs should be prepared for more correction considering the indexes although found support, could not move above floor trader midpoints. However, particularly in NASDAQ, a move over Friday's high could also just as easily renew buying. Of course, the more interesting study of the markets right now (well, always), is the divergence in the sectors and groups.
S&P 500 (SPY) 146.61 Friday's high now near-term resistance to plow through, noting market internals remain bullish. January 2 low-144.73 key to hold
Russell 2000 (IWM) 86.96 the 2012 high is pivotal and for the drama of it all, the closing price Monday is 86.91-so close. 86.04 is the January 2nd low. Over today' high will feel better
Dow (DIA) 132.89 January 2nd low.
NASDAQ 100 (QQQ) Took out January 2nd low and closed above it once again. Now, has to get above Friday's high to see a resumption of the rally. Like that it held the gap and closed green.
ETFs:
GLD Inside day. 158.39 is the 12/20 low. 161.15 the 200 DMA
XLF (Financials)Inside day which is a fine way for this to rest after trying hard to get to the 2011 high.
IBB (Biotechnology) Impressive move outperforming the market
SMH (Semiconductors) If ready to resume, 32.99 should hold. 33.33 should clear
XRT (Retail) Over 64.18 will clear a multi-month base, but could also easily break further after today's weak performance
IYT (Transportation) Inside day.
IYR (Real Estate) 66.25 resistance. Then a gap to fill to 66.57 from September 19th.
USO (US Oil Fund) 33.95 -34.10 resistance to clear.
OIH (Oil Services) Inside day
TBT (Ultrashort Lehman 20+ Year Treasuries) Love to see a dip to 65.12 but would not be afraid to buy renewed strength from here
DVY (Select Dividend Index) May see more correction but still like this as a good place for 2013
REE (Rare Element Reserve) Looking to see if this can clear 4.00
XOP (Oil and Gas Exploration) Inside day
Every day you'll be prepared to trade with:
