Mixed Messages but Generally Bullish Markets

The $SPY and $QQQ are still stuck in ranges, while the $IWM has shown relative strength and the $SMH is trying to stabilize.

$SPY The range of ~140.50 to 142.10 continues to define the action and until a definitive break occurs in either direction trading should be quiet. It is a bullish sign that the market consolidates the gains from last month through time rather than by price.

$QQQ is confined short to a range of 67.50 to 68.60 This market also gives us bullish clues with its time correction and shallow price pullback within the larger uptrend.

click the charts to expand

$IWM has outperformed this week and when you reference the bullish inverted head and shoulders patterns seen on daily and weekly charts (we have discussed in videos, but not show here) it appears this market is poised to continue to outperform. A break below ~8170 would put this rally in jeopardy so keep an eye on that level.

$SMH The semiconductors have been our primary concern over the last several weeks and the pattern of lower highs and lower lows is still intact. Today we tocuhed the rising 50 day moving average and while that average often acts as support, the short term trend is not showing clear signs of accumulation so purchases based solely on the 50 DMA are still risky. With a declining 5, 10 and 20 DMA, it appears the semis will have to spend some more time transitioning for bullishness to re emerge. The key resistance levels SMH needs to overcome are ~3315 and then 3340.