Market Analysis for Trading on 7/23/2014

Mish Schneider | July 22, 2014

Impressive and not so impressive-the market paradox that has prevailed in this Year of the Horse! I have my red bracelet on every day since January 1st!

The Russell 2000s could not close above the 50 DMA after spending most of Tuesday’s session above it. It did however, close near enough to it though, to keep hope alive.

The 20 Year Long Treasury Bonds closed on new highs for 2014-worrisome. Semiconductorsdid great. Not quite new highs, but so darn close!

NASDAQ made new 14 year highs. S&P 500 made new all-time highs on an intraday basis and theDow came close but no cigar.

Trouble spots-Retail-under the 50 DMA in a warning phase. Homebuilders-Crossed back over the 200 DMA, hasn’t cleared the 50 DMA. Regional Banks-under the 200 DMA and really, wins (loses) as the weakest sector.

Remember my focus on China, Regional Banks and Solar Energy? TAN (Solar) confirmed bullish but with 43.00 major resistance to clear. China (FXI) runaway gap to new 2014 highs. Regional Banks-not so much.

We can say this much-the Turnaround Tuesday and not in a good way-off the table for now

S&P 500 (SPY) If you followed the range break after 2 inside days, money was on the table. Now, 197.85 important support

Russell 2000 (IWM) 113.82 a really good place to watch if this can hold. Likewise, over 115.25 much better

Dow (DIA) 170.45 good place to hold

Nasdaq (QQQ) 96.30 now a swing area to hold or not

XLF (Financials) Thought this would do more after 2 inside days-really has to clear 22.95

IYT (Transportation) A move one would expect after 2 Inside days

IBB (Biotechnology) 260 hurdle but still not bad looking if 252 for now holds

XRT (Retail) I still say a market without a strong retail sector is uncomfortable

IYR (Real Estate) 73.00 pivotal

ITB (US Home Construction) Look for a second day of follow through

GLD island top that has not been negated.

USO (US Oil Fund) Unconfirmed warning phase-could not hold the 50 DMA but had an inside day

OIH (Oil Services) Looking a lot better-eyes here

TAN (Guggenheim Solar Energy) Needs to clear 43.00 and hold 42.15

UUP (Dollar Bull) Unconfirmed accumulation phase

Bye for Now!