January 21, 2014
By Mish Schneider
From Noises Off
Even more noise as we await until the market (the Dow) breaks the range of the first two weeks one way or another. However, with S&P 500 holding 184.00 level, the Russell 2000s and NASDAQ going to new highs, today’s sloppy action proved encouraging.
The perplexing relationship among the rates, US dollar and the metals forges on. Silver and Gold dropped yet held critical support on the daily chart. The US dollar maintained the recovery phase. Rates fell again.
Natural Gas and Gas and Exploration had particularly strong moves, crossing back above the 50 DMA. Regional Banks performed well along with the darling of the market-Biotechnology. Retail continues to drag.
All in all, rates remaining on the low side should give oomph to certain commodities and any interest rate sensitive instrument (Real Estate).
S&P 500 (SPY) 184.94 the high to clear for a clean confirmation. Then back to looking for 220.
Dow (DIA) 165 is the place to clear and 162.14 the place to hold
Nasdaq (QQQ) Some big earnings coming up here-GOOG, AMZN, AAPL to name the top 3.
XLF (Financials) Over 22.06 looks like the 3 day correction is done
SMH (Semiconductors) 42.65 is the place to clear after an inside day
IYT (Transportation) Like this over the highs for more
IBB (Biotechnology) Fearless leader
XRT (Retail) Even closer to the 200 than the 50 DMA right now.
XHB (Homebuilders) On cue, tested and held the 50 DMA.
GLD 119 acted as support.
USO (US Oil Fund) 34.26 the 50 DMA to clear
XLE (Energy) Back to an unconfirmed bull phase, but not an exciting group for me right now
XOP (Oil and Gas Exploration) Unconfirmed phase change to bullish
TBT (Ultrashort Lehman 20+ Year Treasuries) Dropped to the 200 DMA so if rates will firm, it will be from this point
UUP (Dollar Bull) Inside day
FCG (First Trust ISE Reserve NatGas) Unconfirmed bullish phase and trendline breakout. Look for an ORR
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