March 22, 2012
Mish's Daily
By Mish Schneider
Divergence continues with semiconductors and transportation hanging tough and energy weak along with a breather in financials.
NASDAQ (QQQ) A new high and close in intraday lows. Certainly a head's up especially after the first signs of exhaustion from DIA. But, we have been here before.
S&P 500 (SPY) Second time it tried to break 140 and wound up closing above that level. 142-144 target reasonable.
The Dow (DIA) Correcting and now very reasonable relative strength while establishing support at 130.80.
Russell 2000 (IWM) Got a second correction day while it holds the fast moving average.
ETFs:
GLD Has to break 158 as it remains in a weak distributions phase.
XLF (Financials) First sign of a correction. Not enough for new longs nor enough to shake out older longs
IBB (Biotechnology) Digesting while going sideways
SMH (Semiconductors) Holding the old high of 35.49 therefore at this point, still see more upside in this sector.
IYT (Transportation) Sideways action and signs of strength
IYR* (Real Estate) Second Inside day. Great one to follow the way the range breaks
XLE (Energy) Follow through after the gap lower and reason to believe soft prices are the longer term trend for 2012 if all stays peaceful.
TBT (Ultrashort Lehman 20+ Year Treasuries) Finally a correction. Like to see 20.35 before recommending new long position
Every day you'll be prepared to trade with:
