Which Sectors Have More and Which are Pooped? $XRT $IBB $IYR $XLE

March 18, 2012

Mish's Daily

By Mish Schneider

Inside day in all 3 indexes, S&P 500 (SPY), NASDAQ 100 (QQQ) and Russell 2000 (IWM), which has become the modus operandi on Fridays quite often. A pause in the action with some points to consider:

NASDAQ (QQQ) Was that it? After some good volume, possible the newer buyers are late. But, some correction here would be healthy.

S&P 500 (SPY) 142-144 reasonable target although if breaks 140, could be in for some correction.

The Dow (DIA) Made a new multi-year high which unlike the others, broke the Friday inside day pattern. Somewhat troubling is the close on the intraday low after the strong start. Watch to see if 131.60 holds. Otherwise, 134-135 reasonable target

Russell 2000 (IWM) 83.31 last swing high still has to clear

ETFs:

GLD In a confirmed and weak distribution phase. 158 a support area and next place to watch for short and back over the 200 DMA impressive

XLF (Financials) Will this give traders a correction to buy or is it more like everyone waiting for the correction so the rally continues. Risk now, unmanageable

IBB (Biotechnology) DOJI day with room on upside

SMH (Semiconductors) 35.49 recent high-if rallies above, don't fight it

IYT (Transportation) 96.13 last high in early February matched on Friday. Over that see a continuation of a move higher.

IYR (Real Estate) Could see move to 63.00-64.00 next.

XRT (Retail) Possible peak on Friday. Also just a possible correction which would be healthy to work off overbought conditions.

USO (United States Oil Fund) Took out the 10 DMA Friday with 40.65 level now pivotal and 41.36 next resistance to clear

XLE (Energy) Strong mover Friday. Over 75.00 should see more.

TBT (Ultrashort Lehman 20+ Year Treasuries) A correction could be in store down to 19.90 which would be a great buy opportunity.

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