December 28, 2011
Mish's Daily
By Mish Schneider
Not a surprising selloff as we climbed the wall of worry to the top of the trading range since the summer.
SPY: After a 5 day incline to the 200 DMA, this selloff was not a big surprise. Worked off the oversold condition and also the gains of the last 2 days. 126.10 the 200 DMA and 123.65 support.
QQQ: Held 55.35 the underlying support. 56.50 overhead resistance
IWM: 73.00 still a support level to watch.
ETFs:
GLD Neared 149.50 short-term target with oversold conditions on the 2-Day RSI.
XRT (Retail) retreated from the top of the range. Like to see this either blast through 54.00 or would not discount another drop closer to 50.00.
XLF (Financials) Closed right on 12.88 the area to hold. A gap below could be ugly, but if comes in higher, we can look at the possibility that the 50 DMA has held for the end of the year.
IYT (Transportation) Retreated from the top of the recent trading range since August.
IYR (Real Estate) 55.00 to hold and 58.20 important to clear.
IBB* (Biotechnology) Inside day near top of channel.
SMH (Semiconductors) Always a great indicator on how long the party lasts or how tired the merry makers are. Tired or pooped? 29.75 next key area.
OIH (Oil Service) After 2 tops at 116.44 dropped to 113. Watching how this opens carefully.
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