Where the Four Leaf Clovers Grow $SPY $IWM $DIA $QQQ

---

I watched for 4 scenarios to develop as the week began. First, that the Russell 2000s would recover, clearing resistance. That did happen although it still needs to clear the fast moving average. Secondly, that the Real Estate and Homebuilder groups would firm. That also occurred with resistance at its fast moving averages. Real Estate remains in a recovery phase yet it too hasn’t cleared the fast moving average. Third, that the Financial group would take out overhead resistance at 20.80. That hasn’t happened, but it did hold at unchanged from last Friday’s close. Finally, that the interest rates would not firm. Basically, they too closed around unchanged from Friday’s close. When one analyzes the four scenarios and their results, then adds the Retail, Transportation, and Energy groups to the mix, it appears the market wants higher, although, correspondingly relaying that there are significant pockets of weakness around.

S&P 500 (SPY) Other than rich relative strength indicators on the weekly chart, looks good

Russell 2000 (IWM) Gave us the relief we needed. Now needs to clear 110.18 and hold 109.00

Dow (DIA) 155 important point to hold with the peak high in September looming overhead

Nasdaq (QQQ) Inside day, which means the range break here will be telling overall

XLF (Financials) Has to clear 20.78 to look better

SMH (Semiconductors) 40.73 is where you want to see this hold with Monday’s low 40.75

XRT (Retail) New highs

IYT (Transportation) New highs

IBB (Biotechnology) 2010-2013 will go down in history for this group. Now, not the place to look for razzle dazzle.

XHB (Homebuilders) 30.00 now the support area to hold.

GLD Back in a bear phase

USO (US Oil Fund) Oversold-best I can say for it

OIH (Oil Services) Back to looking good

XLE (Energy) 87.62 highs to clear

TBT (Ultrashort Lehman 20+ Year Treasuries) Inside day in the TLTs

UUP (Dollar Bull) Unconfirmed phase change back to bearish

IFN (India Fund) 21.16 is a good high to clear

EWG (Germany) Negated the possibility of an island top-good news

FXI (China) Inside day

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!