February 20, 2013
By Mish Schneider
Well, rip your face off alright, only now market looks more like Phantom of the Opera! Even though the FED in division is no real surprise as they could not support low rates forever and, the dollar firming has spooked the market, this is a scenario that ultimately could be good for the US economy. At least that European vacation might be on the horizon now! Seriously, the seed change could yield some great opportunities; but for now, allowing the market to digest after what might have been a key reversal in the DOW and S&P 500 is prudent.
S&P 500 (SPY) Would not rule out a move to the 50 DMA or around 147.25. 152 should be decent resistance for now
Russell 2000 (IWM) Like 89.00 for next support level with 91.50 overhead resistance
Dow (DIA) After it could not clear 140.36 the 2013 high, the market began to smell fishy. Now, 138.32 nearest support then 137.15.
NASDAQ 100 (QQQ) Another clue was the inability for this to clear Tuesday high after making a new 2013 one. 66.60 the 50 DMA support
GLD Significantly oversold on the daily Relative Strength Indicator and now on the weekly one as well.
XLF (Financials) 17.30 would be a good place for this to find support
IBB (Biotechnology) 143.10 the 50 DMA support after what I have been saying is the one to avoid on the long side this year.
SMH (Semiconductors): Brick wall here and I would like to see 34.00 again for a new long opportunity
XRT (Retail) Let's see what happens at 67.00
IYT (Transportation) Finally getting a correction, but also first place to look for a new long when dust settles
IYR (Real Estate) Held the fast moving average as one of the better looking charts although a new high then close on the lows is always a reason for caution
USO (US Oil Fund) On the 50 DMA
OIH (Oil Services) After 2 Inside days-you can feel just as comfortable shorting under the lows as buying over the highs.
XLE (Energy) A drop to 75.00 would be a good place to look at for a new long
TBT (Ultrashort Lehman 20+ Year Treasuries) The last 12 trading days have all been within the range of the big trading range made on February 1st.
XHB (Homebuilders) Landed on the 50 DMA practically giving up the year's gain in one day
UUP (Dollar Bull) Bottom is in.
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