Stock Market Shakes off Bad Economic Data with Hope for Better Tomorrow

September 15, 2011

Mish's Daily

By Mish Schneider

SPY If this week's closing price is above the downgrade week's closing price, maybe, just maybe we can begin to look at some of the S & P 500 stocks that have gotten hit hard. But for now, we can still rally another 3.00 from here and continue to look only like a bear market bounce to the 50 DMA rather than a bottom. My classic signs are absent like volume, slope of moving averages, phase-price can rule, but typically, all factors need to line up. So, not trying to pick a top and all eyes on the FED next week. And we have been recommending longs since the my return in SMH XRT IYT. Therefore, keep raising those stops.

DIA  Here's another example-slope of the 50 DMA declining and yet about 3.00 away from top of range.

QQQ ChartQQQ Kissed the 200 DMA, nearly overbought on the daily RSI and volume light. But, I'm not going to argue with it's now confirmed yet still weak change of phase to recovery. 55.50 was the first target and now a good number to hold. I am still anticipating the breeze that chills the longs, but for now, leaders have shrugged off all bad news.

IWM 74.00 the top of the range. 69.50 now support


GLD Broke but did not short since still in a bull phase. We could drop further, but for now, eyes on signs of support prevail.

SLV closed under the 50 DMA so unconfirmed and weak warning phase. 2 bottoms made late August at 38.05 (not a double bottom for a longer term, more recent daily support). Will watch to see if holds and comes back through the 50 DMA.

SMH Other than partial profits yesterday still long but is overbought which means a close under 30.50 not a bad place for a stop.

IYT Support at 81.00 and next resistance at top of range 86.00.

XRT Had a death cross today right at the moving averages. Find that interesting since might be a low risk short against today's highs if fails 50.00 on a closing basis..

XLF gap fill to 12.99 to watch.

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