February 9, 2012
By Mish Schneider
“As he was valiant, I honour him. But as he was ambitious, I slew him.”
S&P 500 (SPY) could not clear the July high 135.70 although giving it big high fives for valiant effort. Earlier this week we explored what a top looks like. One indication is an orderly price testing at resistance. Perhaps July high is that price-but then again, only a question right now with nothing yet to indicate confirmation.
Russell 2000 (IWM) First real sign of trouble.
NASDQ (QQQ) When on new multi-year highs, everyone still wondering about the top. Perhaps if QQQs break 61.67-perhaps.
GLD 167.50 support to hold after bearish engulfing pattern.
XLF (Financials) Got real close to the 200 weekly moving average before selling off end of day. As a powerful resistance level nobody can deny (been 5 years since above that moving average). As the top too soon to tell. A weekly close under 14.55 troublesome.
XRT (Retail) If cannot end the week above 57.77 could be sign of exhaustion.
IBB (Biotechnology) Could be a reversal since it made new highs and now sold off. But with an inside day, watch 118.67 to hold or bust.
SMH (Semiconductors) Inside day and holding.
XLE (Energy) Do not like to see new multi month highs then a pause that lasts too long. Over today's high though will keep this sector happy.
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