June 10, 2013
By Mish Schneider
The S&P 500 and NASDAQ closed sharply unchanged. Only the small caps firmed (IWM) but never cleared the high from last week. All in all, today was more digestion than a game changer one way or another although the pros and cons are there. Pros: Good volume patterns at the end of last week on positive days, a hold of the 50 simple moving average in the major indices, strong financials as far as bank stocks go, strong retail and semiconductors, to name a few. Cons: The looming Temple of Doom candle high from May 22nd in the indices, a weak real estate and homebuilders group, rates rising, inability to follow through today, especially over last week’s highs in the indices, also to name a few. With pros and cons fairly evenly matched with a slight edge to the pros given the trend, the illustrious Tuesday should help elucidate.
S&P 500 (SPY) Digestion, low volume, hanging onto the fast moving average with overhead resistance to clear
Russell 2000 (IWM) 99.20 is last week’s high to clear.
Dow (DIA) 152.91 last week’s high to clear and today’s low a good place to hold
NASDAQ 100 (QQQ) 73.82 last week’s high with today’s low a good place to hold
GLD 135 resistance with 130 a very substantial area of support
XLF (Financials) It’s all about the 80 monthly trend reversal that confirmed in May
IBB (Biotechnology) 180 has to clear otherwise under 176.75 renewed selling could come in
SMH (Semiconductors) Last week had a reversal candle at the highs which means 38-39.00 good range to watch for a break either way
XRT (Retail) Doji candle which means tomorrow, could lead the way
IYT (Transportation) Confirmed bullish phase only not very exciting
IYR (Real Estate) Inside day and red. The 200 DMA will not hold this up on any further weakness.
USO (US Oil Fund) Inside day.
TBT (Ultrashort Lehman 20+ Year Treasuries) New 2013 highs
XOP (Oil and Gas Exploration) Quiet
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