Walking the Line $DIA $SPY $IWM $QQQ

---

The morning was somewhat hair raising, as three of the four major indexes broke or threatened the low of last week. IWM and SPY broke the low but quickly recovered-closing higher. The Nasdaq (QQQ) held up the best. The Dow Jones Industrial Average (DIA) threatened last week’s low before following the suit of the other indexes and grinding higher. Of the indexes, GLD was the story of the day after it gapped higher and moved into an unconfirmed recovery phase. The China ETF (FXI) also performed very well today, gapping over recent highs. I will be focusing on stocks that are just changing phase and clearing moving averages.

S&P 500 (SPY) Broke last week’s low but closed above it. 168.19 is support.

Russell 2000 (IWM) Beware of weakness under today’s low. Below 103, could see a test of the 7/11 gap at 101.94.

Dow (DIA) Inside day. Heldthe gap from 7/11.

Nasdaq (QQQ) Under pressure but holding up well. Today’s low must hold. Beware of weakness under 75.87.

ETFs:

XLF (Financials) Doji day. A test of the 50 DMA seems to be on the horizon, if today’s low is broken.

SMH (Semiconductors) Closed just shy of the 50 DMA, bringing this into a confirmed warning phase. Positive pivots.

XRT (Retail) Still under the 10 DMA. Bullish engulfing day and closed above the previously mentioned channel.

IYT (Transportation) Holding support at 114.96. Under this level can mean a test of the 50 DMA.

IBB (Biotechnology) 190 is an important area to hold.

IYR (Real Estate) Inside day under the downward sloping 10 DMA. Support on the 23 monthly moving average.

XHB (Homebuilders) Choppy sideways action. Holding support and under resistance.

GLDImpressive gap up this morning and proceeded to chop sideways. Unconfirmed recovery phase.

USO (US Oil Fund)37.85 is slight resistance.

OIH (Oil Services)Inside day. A break over yesterday’s range will move this over the 10 DMA.

TBT (Ultrashort Lehman 20+ Year Treasuries) Held yesterday’s lows and climbed higher, falling just short of the 10 DMA. The upward sloping 50 DMA is catching up to the price.

UUP (Dollar Bull) Gapped up, leaving an island bottom.

For more detailed analysis join me, along with hundreds of other subscribers, at Mish's Market Minute and get my daily trade picks, trade alerts, training videos, and exclusive analysis tools. Sign up for Mish's Market Minute now and get a free 2 week trial!