Artist: James Palmer Mulligan

“Devil or angel, I can’t make up my mind.” Blanche Carter

A week ago Monday, the Dow Jones Industrial Average declined. Tuesday it rallied. Wednesday it rallied more. Thursday it gave up all of Tuesday and Wednesday’s gains. Friday it donned wings again.

Fascinating that the Dow seems to have finally rejected the idea that at 18,000 gremlins will reappear. Up until early July, every time the Dow ran to 18,000 it would retreat in terror.

After the first week in July, the more confident Dow cruised to a much higher altitude of 18,688 without any turbulence.

Until early September.

As September drew to a close last Friday, the Dow Jones had tested support at 18,000 to 18,250 several times. Each time it looked like lights out, buyers came in to other sectors of the market. Each time the Dow, satisfied the gremlins were gone, rallied in kind.

I pick on the Dow because as of Friday’s close it remains in a warning phase.

Can the buying in the other sectors turbocharge the Dow higher? Or, is the Dow’s warning phase one to heed?

Devil or angel? “Please say whichever you are.” It’s like the shoulder angel shoulder devil. Will the Dow scratch on the door or pee on the rug?

On Friday, Nasdaq just about matched the 16-year high. The S&P 500 tried but could not close above its 50 DMA. And the Russell 2000 remains bullish but with more to go to eliminate concerns about a possible reversal top.

Last week I wrote a lot about the solar and oil markets, both of which I anticipated could and did rise together. What remained unanswered coming into last Friday was how if at all, that would impact the overall macro picture.

Coming in to this week, the answer may appear more angel-like after Friday’s rally. Yet, that angel could be the devil in angel’s clothing.

If the devil is in the details, what should we look for?

The Modern Family has its own share of shoulder devils and angels. With Semiconductors going out on new all-time highs and Retail barely lifting itself from support, start there.

Now that both solar stocks and oil tried to bottom, go there next.

Since interest rates firmed and gold and silver fell, check out their action as well.

Finally, watch to see if the Russell 2000 can clear Friday’s high and the Dow/S&P 500 can reclaim bullish phases.

“You look like an angel
Your smile is divine
But you keep me guessin’
Will you ever be mine”

S&P 500 (SPY) Better if can clear/close over 217. Pivotal point 215 then 212 rock bottom support

Russell 2000 (IWM) Working a reversal top unless it gets back/closes over 124.75. The 50 DMA at 122.50

Dow (DIA) 184 to clear and must hold 180

Nasdaq (QQQ) Must close over 119 and hold 117

KRE (Regional Banks) Inside day above the 50 DMA. That makes 41.40 and 42.50 the range to break one way or another

SMH (Semiconductors) News highs-still amazing

IYT (Transportation) 144-146 the resistance to clear. 141.50 support

IBB (Biotechnology) Could not quite close back above the 50 DMA

XRT (Retail) This is my devil until it clears 44.00

IYR (Real Estate) Devil

GLD (Gold Trust) Devil is making noise here. 125 pivotal support

SLV (Silver) A weekly bull flag forming taking its time to break out of

GDX (Gold Miners) 26.50 pivotal support held

USO (US Oil Fund) 10.88 the 50 week moving average closed above-needs to be a bit more convincing.

TAN (Guggenheim Solar Energy) Between 19.80-20.05 support area

TLT (iShares 20+ Year Treasuries) 138.30 the 50 DMA pivotal. 136.50 support

UUP (Dollar Bull) Until it closes over 25 or under 24.60 I’m neutral