May 18, 2014
By Mish Schneider
Ralph Waldo Emerson: Transcendentalist and Editor of the Dial.
Actually not a bad ending to last week with both the weaker indices NASDAQ and Russell 2000s (confirmed reversal candle after Thursday’s rough start) one small push away from taking out the overhead moving averages (QQQ in better shape). S&P 500 and the Dow defended the 50 DMA after all was said and done.
I’m going to say it before I read it on twitter-Turnaround Monday is the new Turnaround Tuesday as the last 2 Mondays have seen big gains. Will this Monday make 3 times a charm?
Here is what I am looking for folks. Besides the obvious penetration of the indices especially IWM and QQQ over the 200 and 50 daily moving averages respectively, interest rates continue to be my obsession.
Should the TLTs gap below 113.42 and NOT fill that gap, island top material. The last island I saw and wrote about was the island bottom in the US Dollar (UUP). That happened at 21.21 with the final closing price of the week posted at 21.39 or a 3 times its average range move.
And there I am again-looking for the turn of the dial!
S&P 500 (SPY) Inside day. Held the 50 DMA, clearly that is a line in the sand with a move over 188.60 good
Russell 2000 (IWM) Nice turnaround from lows, but has to clear the 200 DMA at 110.91
Dow (DIA) Held the 50 DMA and needs to clear 164.90
Nasdaq (QQQ) 88.09 should do it if this is good
XLF (Financials) Inside day and a bit far from the 50 DMA to get excited
SMH (Semiconductors) Inside day with the 50 DMA to clear 44.82
IYT (Transportation) Last 30 minutes on Friday brought in volume-look here Monday morning
IBB (Biotechnology) Siesta on the 200 DMA
XRT (Retail) Cleared the 200 DMA so if stays there maybe finally the worst is over
IYR (Real Estate) Back to looking good
GLD If there were ever an ETF I would remove from my screen-however, at some point it will make some noise
USO (US Oil Fund) If this can fill the gap to 37.55 and continue looks really good
OIH (Oil Services) Inside day on the 50 DMA
XOP (Oil and Gas Exploration) Inside day on the 50 DMA
PHO (Power Shares Water Resources) Confirmed a bottoming type candle
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