October 1, 2013
By Mish Schneider
Accumulation in volume, new 2013 highs in NASDAQ and the Russell 2000s, Biotechnology, Oil and Gas Exploration ETFs, positive phase change in the Real Estate ETF and a return to an unconfirmed bullish phase in the S&P 500. Who needs government you might be asking yourself? The poor couple planning to get married in a public park that is now closed does-the 800,000 folks furloughed until further notice for sure-but Wall Street? I wrote we were ready to dance to whatever tune the market played-never expected Beethoven’s 9th Symphony-second movement.
S&P 500 (SPY) About a 50% retracement from the high tick on September 19th and the low tick September 30th. Has upside resistance so remains to be seen what this is really made of
Russell 2000 (IWM) Who closed their eyes and followed this over Monday’s high as written in last night’s daily? 107.61 old 2013 high pivotal with support to hold 106.90
Dow (DIA) Wrote-“First has to clear 151.76 then the 50 DMA so definitely has its work cut out for it.” Today’s high 151.77
Nasdaq (QQQ) Another one to dive into-we did it with AAPL-thanks Icahn and Cook!
XLF (Financials) Still under the 50 DMA which remains troubling as a possible double top from July and September still in play
SMH (Semiconductors) Good move but relatively muted compared to my other favorite dance partners
XRT (Retail) 83.24 is the 2013 high to clear
IYT (Transportation) This will look even better over 119.45
IBB (Biotechnology) Dancing with the stars!
IYR (Real Estate) Unconfirmed recovery phase-needs another day over the 50 DMA
GLD Made a huge drop overnight leaving the risk big-waiting to see if it can nearer to 127-where I believe the risk for a short is more manageable
USO (US Oil Fund)Landed right on the 200 weekly moving average-and now an inside day
XOP (Oil and Gas Exploration) Love this group and expect the 2008 highs to be tested at some point
TBT (Ultrashort Lehman 20+ Year Treasuries) Without the government, do we get a reprieve from tapering talk?
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