Velvet Underground $SPY $QQQ $DIA $IWM

October 29, 2013

Mish's Daily

By Mish Schneider

Many signs of a market holding its breath. First, logic-ahead of the FOMC and lots of economic data, important earnings yet to come out. Second, price-as in the indices didn’t do that much. Third, the volatility indicator-2 inside days in the VIX-a definite pause. Fourth, volume-the S&P 500 closed on new highs with light volume. When I can find four sound factors for the current pause in the current bull phase, typically I notch it up to a time rather than price correction.
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S&P 500 (SPY) Longer term we could be looking at a move to around 220. Unless we break April lows. Then all bets are off

Russell 2000 (IWM) 109.77 super important to hold now.

Dow (DIA) Unless this gets above 156.20 and then the top of a channel that goes back from May peak high, this could be merely a move to resistance and not much more. Too soon to say, but definitely worth noting if this begins to rollover

Nasdaq (QQQ) AAPL reported and at time of writing, had tested lower levels and was settling around the closing price of the session. QQQ had an inside day.

XLF (Financials) Inside day and still has not clear 20.88-to negate the topping candle

SMH (Semiconductors)Better, and now has the fast moving average to get through

IBB (Biotechnology) Digesting its recent move-all without getting to the all-time high

IYR (Real Estate)Failed the 200 DMA for an unconfirmed phase change to Recovery

XHB (Homebuilders)Digesting

GLD Subscribers:SLV Closed slightly under the 50 DMA-not concerning more stagnating-inside day

USO (US Oil Fund)Confirmed phase change to warning.

OIH (Oil Services)Has to clear the brick wall candle 49.78 to keep going

XOP (Oil and Gas Exploration) Inside day. Listless action but still in the game.

TBT (Ultrashort Lehman 20+ Year Treasuries)FOMC starts Tuesday

UUP (Dollar Bull) Maybe through 21.45 will reverse the downtrend

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