May 8, 2012
Mish's Daily
By Mish Schneider
With all indexes in weak warning phases (exception is Russell 2000 which is in a strong warning phase), unless market bounces back above the 50 DMA, perhaps the recent rally and subsequent failure sealed the fate for a top in place and more downside to come.
S&P 500 (SPY) Through 137.63 the 50 DMA is more reasonable a target.
Russell 2000 (IWM) Over today's high could give this a bounce, otherwise, watch the EMA
Dow (DIA) Over today's high could give this a bounce, otherwise, watch the EMA
NASDAQ 100 (QQQ) Over high could give this a bounce, otherwise, watch the EMA
GLD look for a short
XLF (Financials) 15.00 swing area. Longer it holds the better the chances for the market. A failure and see a test of the weekly moving averages below
IBB (Biotechnology) Once the VRTX news runs its course, possible this has seen the highs for now. Only way to alter that bias is if the recent highs are taken out
SMH (Semiconductors) Looks ominous with next major support at 32.00. Only interesting aspect to note is the hammer candle formed today
XRT (Retail)Another hammer candle after the double top at 63.04.
IYT (Transportation) Could have run its course
IYR (Real Estate) One bright spot in the market as long as 63.00 holds. But can this group hold up the market?
USO (US Oil Fund) Would look to buy over the 200 DMA
XLE (Energy) After the run up to and failure from the 50 DMA, not a real interesting looking chart right now
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