September 23, 2012
Mish's Daily
By Mish Schneider
S&P 500 closed out the week down with an inside day. It also closed resting on the fast moving average which means Monday will be telling about whether or not this it's due for more correction, or ready to rally on. Russell 2000 closed up on the day, down on the week, holding the fast moving average. NASDAQ closed basically unchanged. The divergence is notable, but not nearly as notable as the divergence in the sectors and groups. Biotechnology is unshakeable right now; real estate, retail, the financials fell off substantially. But the real kicker is in semiconductors and transportation-both fell hard and have charts that look foreign compared to the overall market internals. I liked the old twist better than the new twist.
S&P 500 (SPY) Inside day which means follow the range up or down.
Russell 2000 (IWM) 85.00 to 85.20 area has to hold. This outperformed so watch this for a clue
NASDAQ 100 (QQQ) Good news it worked off some of the overbought conditions. The fast moving average is 69.67 which could still be tested. Otherwise, now over last week's high, good thing.
ETFs:
XLF (Financials) The second disappointing close last week into support which means do or die to the 50 DMA
SMH (Semiconductors) Confirmed phase change to distribution. Looking to see if can turn around and clear the 50DMA.
XRT (Retail)I was long and exited since it could not close over the fast moving average. But, it held the low from last week so willing to give it another shot if can clear Friday's high
IYR (Real Estate) Actually oversold and tested near the 50 DMA and an inside day to boot
USO (US Oil Fund) Still inside the candle from last Thursday. Under Friday's low looks vulnerable still
OIH (Oil Services) Watch Friday's low to hold
XLE (Energy) 74.40 important support to hold if this is to stay strong.
Every day you'll be prepared to trade with:
