January 11, 2012
Mish's Daily
By Mish Schneider
S&P 500 (SPY) and Russells 2000 (IWM) now have 2 days confirmed on a breakaway gap over the 200 DMA. Major issue for many investors is the lack of volume which is causing anxiety as many are waiting for the other (bear) shoe to drop. NASDQ (QQQ) did eke out an accumulation in volume although compared to the average daily volume, is still light. We are also indicating RSIs nearing overbought but not putting as much credence into that as if commitment returns, those RSIs can climb even higher.
ETFs:
GLD Now that it is back over the 200 DMA, provided this area holds, looking at dips as a buy opportunity.
XLF (Financials) Finally looking at the 200 DMA but as we approach overbought. Would be healthy to see some digestion before it can blast through. Ideally want to see the gap over 13.55 hold.
IYR (Real Estate) The hammer candle played itself out today. First close above the 200 DMA since late July.
IBB (Biotechnology) Exactly my point about how something overbought can get more overbought when the chart is set up.
XLE (Energy) Could not confirm the phase change as it did not sustain over the 200 DMA.
OIH (Oil Service) After meeting the target yesterday, closed the gap. Now, 117.30 good level to watch for support.
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