May 14, 2012
By Mish Schneider
A bit hard to short the market at these levels as far as risk is concerned which means a good time to brush up on what constitutes a bottom signal to buy while we stay mainly in cash. Market has rolled over indeed for those who took the accelerating warning phases last week and shorted then. Now, a bit late to that party.
S&P 500 (SPY) 132.50 next support area.
Russell 2000 (IWM) Under 78.00 and 75.50 looks obvious. Above Monday's high though-be flexible
Dow (DIA) Oversold daily RSI
NASDAQ 100 (QQQ) 63.48 last week's low making that the new key area to watch
GLD Got short at 162, covered at 155 and missed this last leg down as oversold
XLF (Financials) 14.35ish the retracement to the weekly moving average
IBB (Biotechnology) Here is one reason it is hard to short now-this group had an inside day way outperforming
SMH (Semiconductors) Want to see if 32.15 holds-then might look here for strength
XRT (Retail) Broke the bear flag and now looking at last week's low 58.57.
IYT (Transportation) 91.00 important and still holding
IYR (Real Estate) Must clear 64.00 or see what happens at 63.00. But this and biotech are markets best hope right now
USO (US Oil Fund) oversold
OIH (Oil Services) Daily really, really oversold-this is not where I would go for shorts right now
TBT (Ultrashort Lehman 20+ Year Treasuries) Weekly RSIs very oversold
For more detailed analysis join me, along with hundreds of other subscribers, at Mish's Market Minute and get my daily trade picks, trade alerts, training videos, and exclusive analysis tools. Sign up for Mish's Market Minute now and get a free 2 week trial!
Every day you'll be prepared to trade with: