August 9, 2012
Mish's Daily
By Mish Schneider
After the shooting star formations in the Dow and S&P 500, in order for that to just go away, the highs from Tuesday in both have to be taken out. Otherwise, it is fairly bizarre action to be hovering up here near the highs while in overbought territory. And, volume remains super light. Therefore, have to assume the market wants higher, although other than massaging existing positions and cautiously entering longs on ones that are not extended, not seeing a whole lot to do safely right now.
S&P 500 (SPY) 140.92 has to clear and caution under 140.
Russell 2000 (IWM) Closed over 80.00 on anemic volume. 80.57 the week high to watch and now 79.75 an area to hold
Dow (DIA) Over 131.89 shooting stars go bye bye and under 131, would exercise caution.
NASDAQ 100 (QQQ) After the inside day, this eked a close above the prior day high. 66.92 weekly high to clear. 66.40 to hold.
ETFs: Note that all the weakest ones this week, Thursday, held previous day lows
GLD 157.96 recent swing high since this changed phases. Bullish engulfing pattern but like most instruments, very light volume.
XLF (Financials) Shooting stars on the daily chart remain unless this clears 15.06.
IBB (Biotechnology) 132.00 key to hold as this continues its slumber
SMH (Semiconductors) This took out the possible shooting stars so perhaps a harbinger.
XRT (Retail) 2 inside days in a row-definitely getting ready to do something
IYT (Transportation) 91.10 still key to cross
IYR (Real Estate) 64.26 today's low worth watching
USO (US Oil Fund) Inside day
OIH (Oil Services) 41.68 is a weekly moving average resistance area. Curious to see what this has.
XLE (Energy) Although overbought, evidence of how follow through after inside days can work.
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