You Were Warned $SPY $QQQ $IWM

May 14, 2012

Mish's Daily

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

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