Six Degrees of Separation $SPY $IWM $QQQ $DIA

September 23, 2013

Mish's Daily

By Mish Schneider


The great small caps hope-or shall I say, where my focus began during today’s session, and where my focus remains at the end of today’s session. IWM or Russell 2000 has the clearest technical pattern right now. For one, it closed green while the other indices did not. Secondly, it closed with a doji candle-when the opening and closing prices are the same or real close together. Third, it held the fast moving average. Fourth, it had an accumulation day in volume on a down day in the Dow. Fifth, this correction has helped it to work off any overbought conditions. Sixth, it is holding the prior 2013 highs made in the beginning of August. 6 reasons to let this one tell the tale going into Tuesday.

S&P 500 (SPY) Has to clear Monday’s high to bring back buyers. Also, has to hold the 50 DMA support

Russell 2000 (IWM) Much better looking which brings me back to hope-watch this for a failure of 105.75-105.50 or a move back over 107.00

Dow (DIA) Wrote over the weekend that this has the closest trip if continues south, to the 50 DMA. Good news is the slope on the 50 DMA is still pointing up!

Nasdaq (QQQ) AAPL sure prevented this index from falling apart closing basically unchanged. One could say that that is a significant underperformance to AAPL and thereby deduce that if AAPL falls from here, QQQ could as well only harder.

ETFs:

XLF (Financials) Unconfirmed return to warning phase with 20.11 recent support (September 13th low) to hold

SMH (Semiconductors) 39.78 good underlying support to hold and still looking ok longer term

XRT (Retail) After failing to take out the old 2013 high, look at 81.55 then 81.00 as key levels of support or a move over today’s high a good sign

IYT (Transportation) Like to see today’s low hold

IYR (Real Estate) Besides IWM, I am looking here to gauge how much confidence there is in the market to hold up from these levels. Monday’s low super important.

XHB (Homebuilders) 29.80 its support area

GLD Subscribers: Although we took a teeny loss, I like the hammer candle and will continue to watch it from here

USO (US Oil Fund)confirmed warning phase

OIH (Oil Services)47.00 next area of support

XOP (Oil and Gas Exploration) Closed unchanged. Long term still friendly here

TBT (Ultrashort Lehman 20+ Year Treasuries) TLTs got an unconfirmed phase change to recovery

EWG (Germany) Good correction to start watching for an entry point

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