Market Analysis for Trading on 1/29/2014

Mish Schneider | January 28, 2014

I have talked about the power of the phases thus far. In that respect, nothing has changed. All the indices ETFs remain in weak warning phases (I also wrote about the slope of the 50 DMA as a gauge to determine the weakness or strength of a phase.)

The volume on Tuesday’s reversal not impressive enough to make the textbooks. Finally, another favorite chart pattern to note-inside days (when the range of the session is INSIDE the range of the session prior). That happened in 3 out of 4 of the indices. DIA the exception clearing but not closing above Monday’s high.

Inside days typically means a pause in the action or indecision. Therefore, playing Sherlock here, I see a market still in correction, possible ready to resume a move up; however, more likely to resume or remain in the current phase with that nagging chance of the price accelerating to downside.

We shall know soon enough.

S&P 500 (SPY) Inside day. Not sure I would follow aggressively to upside, More interested in SDS if fails the lows Subscribers: Positive pivots in all but QQQs

Russell 2000 (IWM) Inside day. Better than SPY but still hesitant at this point to get long

Dow (DIA) Worked off oversold condition in its current warning phase

Nasdaq (QQQ) AAPL dragged this down which means only if it clears today’s high does it look better

XLF (Financials) Better, but still in warning phase with all the concerns listed above

SMH (Semiconductors) Confirmed warning phase. Also, has to clear Tuesdays high to get interesting

IYT (Transportation) Unconfirmed bullish phase which means has to hold the 50 DMA Wednesday

IBB (Biotechnology) Holding the bull phase and should clear 244 if it’s going to stay there

XRT (Retail) Inside day and couldn’t make it back over the 200 DMA-really needs to or going lower

IYR (Real Estate) Inside day in the recovery phase-now has to clear Monday’s high

XHB (Homebuilders) Bounced off the 200 DMA yet remains under the 50 DMA

GLD Indecisive action here now-decent phase, has to hold and clear 121.50

XLE (Energy) Subscribers: Looking at today’s high as resistance if it begins to turn down again

TBT (Ultrashort Lehman 20+ Year Treasuries) TBTs did not confirm the reversal low-now, the FED will have most immediate impact

TAN (Guggenheim Solar Energy) Subscribers: Made a good move into resistance.

CORN (Corn) Subscribers: One more push will clear the 50 DMA

BAL (Cotton) Subscribers: Narrow range inside day-watch to see if can clear the 200 DMA

JO (Coffee) Subscribers: Inside day with the 50 DMA acting as support

Bye for Now!