NASDAQ did its part to defend the 50 DMA, ending the day with an inside day, unconfirmed phase change to bullish. The market tone in the S&P 500 remains negative, but SPY also had an inside day-and a doji one at that (the opening and closing prices practically the same).
The Russell 2000s closed red. The 50 DMA sits just underneath making this the index to watch Wednesday. The Dow was the winner with IBM soaring above the 200 DMA.
A low volume drift higher gives some encouragement, but not real enthusiasm. The inside day scenario in 2 out of the 4 indices, will make tomorrow range break important.
S&P 500 (SPY) 187.10 good area to clear while Tuesday’s low important to defend Subscribers: Positive pivots except in IWM
Russell 2000 (IWM) 115.50 the 50 DMA to watch. Over 118.30 new life
Dow (DIA) 162.45 support to hold.
Nasdaq (QQQ) Unconfirmed bull phase but not with a lot of oomph-big one to watch for range break
XLF (Financials) 22.19 the fast moving average. Still in play if holds up
SMH (Semiconductors) Performed well and still with lots and lots of upside. Subscribers: 44.60 area to defend
IYT (Transportation) Like over 136.00
IBB (Biotechnology) Inside day and perhaps the rally that could meet with more selling Wednesday.
XRT (Retail) Without retail, market will have issues. 83.30 key support
IYR (Real Estate) 67.00 is the weekly moving average and ultimately the place to defend by the end of this week
XHB (Homebuilders) Inside day confirming the warning phase
GLD Inside day and about to get a golden cross
USO (US Oil Fund) 35.58 important support to hold or will lose the 50 DMA
OIH (Oil Services) Snuck up to new 2014 highs
XLE (Energy) Inside day and looks better over Tuesday’s highs
XOP (Oil and Gas Exploration) Inside day near the highs for 2014-good one to watch
TBT (Ultrashort Lehman 20+ Year Treasuries) Defended the lows yet needs to clear 69.00
EEM (Emerging Markets) Subscribers: The 200 DMA is right there
EWG (Germany) Looks better especially if clears Tuesday’s high
FXI (China Large Cap Fund) Subscribers: Didn’t quite make the phase change. Will watch for that tomorrow or tighten our stop
TAN (Guggenheim Solar Energy) Subscribers: Inside day on the 50 DMA-Like to see today’s lows hold
CORN (Corn) Subscribers: Inside day on the 10 DMA
BAL (Cotton) Subscribers: Spectacular turnaround-60.53 high in 2013
FCG (First Trust ISE Reserve NatGas) Subscribers: Inside day and a good looking chart
SGG (Sugar) Subscribers: Has to get going over 56.00 and soon
Bye for Now!
