February 26, 2013
By Mish Schneider
Market recovered more than ½ of Monday's losses and several instruments tested and held the 50 DMA. However, only DIA of the four indexes were able to cross back over their floor trader midpoint which makes today encouraging yet indecisive. Plus volume on the S&P 500 did not confirm the move with an accumulation. Bottom line, watch rates (TLTs closed under the 50 DMA) and small caps (IWM or Russell 2000) for best clues which way as we approach hump day.
S&P 500 (SPY) 151.50 is overhead resistance and still looking at the 50 DMA for support.
Russell 2000 (IWM) 87.75 is the 50 DMA. 90.90 now significant resistance
Dow (DIA) Inside day. 136.00 is the 50 DMA
NASDAQ 100 (QQQ) Confirmed weak warning phase since could not cross the 50 DMA.
GLD 154 now key support if this bounce is good to 158 next resistance
XLF (Financials) Bounced off of the 50 DMA. Over 17.50 would be an encouraging move
IBB (Biotechnology) Sloppy chart but did bounce off of the 50 DMA twice
SMH (Semiconductors): Inside day.
XRT (Retail) Uninteresting DOJI candle for now
IYR (Real Estate) Inside day.
USO (US Oil Fund) Inside day.
TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs did not confirm the recovery phase which makes me real interested to see if the TBTs can clear its 50 DMA.
DVY (Select Dividend Index) Inside day
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