I am on a mac using Mist. I have 1 ether in my account and a few more in my wallet. How do I send ether from my wallet to an exchange? I see that I can deposit bitcoin but I can't withdraw ether... Do I need to do this via the command line? When I hover over my wallet it reads "watch only" and in the top right hand corner it shows my account balance not my wallet balance. Any guidance is appreciated.
You need to make an account at an exchange like Poloniex or Kraken. They will then provide you with an address where you can deposit Ether. You can also use Shapeshift, which allows you to exchange ETH for BTC or other cryptocurrencies.
Then just click on the account in Mist that you want to send from, and click the send button up at the top. Send the ether to the address that the exchange provided.
Note that Shapeshift does not currently support sending from smart contract wallets, so send to an account first, then to Shapeshift.
See this question for the difference between accounts and wallets.
You shouldn' send ether to Kraken from a contract wallet at all.
Kraken.com: Attention! Send only normal transactions with an amount larger than 10 GWei / Shannon. Do not send from a contract wallet. Contracts crediting your deposit address without a proper transaction won't result in a valid deposit.
If the wallet says "watch only" you have no control of the wallet contract.
A contract based wallet, like these created in mist, are externally owned. To import them, you use the public key of the wallet contract in mist.
To actually use them, you also have to make sure to import the backup of your account's private key which is owning the wallet contract.
geth account import /path/to/keystore/backup/UTC--2016-02-02T00-36-01.611176405Z--00006314ee6ba5a9421e4aa6a47c6867a882bd92
This will turn a watch only wallet into a fully accessable.
You have backups, don't you?