When the Moon Hits The Sky Like a Big Pizza Pie...

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One could argue both sides for whether or not last week’s action and especially the digestion on Friday was bullish or negative (won’t use the word bearish when the phase is bullish).

The S&P 500 closed out the week hovering on the fast moving average, with an inside day and down from the peak and prior week’s high.

Does that leave us moonstruck? I wrote last week about the rarity of a Friday the 13^th and a full moon occurring simultaneously, but that was more for entertainment.

Writing as a professional technical analyst, I rather comment that looking at the Dow, which closed under the fast moving average, also with an inside day and NASDAQ, which closed above the 10 DMA, yet again, with an inside day, suggest that the correction may not be over. This conjecture also comes with consideration of a tenuous situation in Iraq.

Several flights to quality we saw last week, rates dropped, gold and oil rallied, are concerning. Other signs that if the Iraq situation stabilizes, market will resume its course higher after correcting about 50% in the SPY from peak high to gap low over a 14 day period, such as Semiconductors on new highs, Retail and Financials holding.

I do like that the small caps closed just slightly under the close of the week prior-115.59 versus 115.88. One little push and the Russells could alleviate any anxiety from those who witnessed a wicked witch riding on her broomstick across the diameter of a full moon.

S&P 500 (SPY) Held 193.50 as a 50% retracement and with an inside day over 194.80 back in the saddle

Russell 2000 (IWM) Over 115.91 good under Friday’s low, worrisome

Dow (DIA) Inside day and most troubling with its position under the fast moving average

Nasdaq (QQQ) Inside day on the fast moving average. 92.79 will bring relief

XLF (Financials) Held support and now has to clear 22.75

SMH (Semiconductors) INTC clearly helped an already amazing sector

IYT (Transportation) Inside day and precarious at best unless really moves up Monday-here is a warning

IBB (Biotechnology) Over 250 next stop around 270

XRT (Retail) Still not in a bullish phase. But, at least holding above the key moving averages which it has to continue to do

IYR (Real Estate) Fairly significant correction but still very much in a bullish phase

ITB (US Home Construction) In a bull phase but weakened considerably. Now, has to hold Friday’s low

GLD 123.07 resistance which if clears looks like it will follow SLV which took out the 50 DMA

USO (US Oil Fund) Iraq gave this a big push which is not overall good for the market-ultimately not good for the market.

OIH (Oil Services) Very strong finish-looks higher

XLE (Energy) New highs again

XOP (Oil and Gas Exploration) Wrote that this was ready for new highs over 78

FCG (First Trust ISE Reserve NatGas) New 2014 highs

TAN (Guggenheim Solar Energy) Confirmed a bullish phase and looks like it’s just getting going

TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs Back over the 50 DMA-bullish phase again

PHO (Power Shares Water Resources) 27.23 2014 high

FXI (China Large Cap Fund) New 2014 highs-now it gets interesting