Worthy time digestion rather than price correction with choppy conditions and low volume to end the week.
The Dow closed with an inside day (DIA) marginally under the 50 DMA for an unconfirmed weak warning phase.
Homebuilders cleared a 2 inside day pattern looking promising for this week. Retail held the important improvement in phase change. The Financials were disappointing unable to clear the 50 DMA after trying intraday.
Transportation resumed its move back to an unconfirmed bullish phase. Perhaps, besides the DIA incapable of holding the bullish phase, the other potentially significant aspect to watch for is the SPY. Three attempts to take out the 2013-2014 high thus far, unsuccessful.
Add all of this up and this puts the market in an interesting place-bears and bulls squaring off once again.
S&P 500 (SPY) 184.95 the highs and 181.42 critical support Subscribers: Positive pivots in all except DIA
Russell 2000 (IWM) Close on a new week high right into resistance at 115.74 so no real sign yet.
Dow (DIA) Inside day with one foot out the door the other firmly planted
Nasdaq (QQQ) AAPL closed poorly but if that turns around, look once again here for leadership
XLF (Financials) Warning phase, albeit a weak one
SMH (Semiconductors) Might be taking a rest but not ready to say it’s over unless Monday is ugly
IYT (Transportation) Unconfirmed bullish phase
IBB (Biotechnology) One day I hope all these amazing drug companies impact more than the bottom line for share holders
XRT (Retail) Digesting above the 200 DMA-eyes here
IYR (Real Estate) Digesting here
XHB (Homebuilders) Looks promising if holds above 32.30
GLD See no reason why the cash gold can’t rally another $100 up from here
USO (US Oil Fund) Worked off overbought conditions
OIH (Oil Services) 48.00 like the Berlin Wall used to be
XOP (Oil and Gas Exploration) Over 69.61 may have something
TBT (Ultrashort Lehman 20+ Year Treasuries) Low volume decline
UUP (Dollar Bull) 21.60 an area to watch
EEM (Emerging Markets) Subscribers: The 50 DMA is overhead then the 200 DMA-can make a case for a bottom and a head and shoulders top
FXI (China Large Cap Fund) Over the 200 DMA will be interesting
BAL (Cotton) Subscribers: Golden cross with a move over Friday’ high interesting to see if can clear 56.15 and keep going up
JO (Coffee) Subscribers: Digesting at these new high levels
Bye for Now!
