The market ended the last trading day of January mixed as the small-caps advanced while the major indexes pulled back a bit. The gains range from 4%-6% for the month and the bullishness could be a good omen for the rest of 2013.
The Dow declined 50 points, or 0.4%, to settle at 13,860 on Thursday. The blue-chips traded to a high of 13,941 before finishing at its low for the session. The index is still a half-percent above 13,800 but the bulls will need to hold this level going into the weekend. A close above 13,900 would be bullish going into next week for another run at 14,000.
The S&P 500 slipped 4 points, or 0.3%, to finish at 1,498. The index traded to 1,504 but needs to clear 1,510 if the bulls expect to reach 1,525 over the near-term. The close below 1,500 keeps 1,475 in the play if there is further downside weakness.
The Nasdaq dipped a fifth of a point to end at 3,142. Tech made a run back above 3,150 to 3,154 but failed to hold this level shortly after the open. The next 50 points are going to be battle and will likely shape February’s trend depending on which side wins.
The Russell 2000 gained 5 points, or 0.6%, to close t 902. We mentioned the small-caps were showing strength yesterday and the close above 900 again was bullish as long as it holds today. Meanwhile, the S&P 500 Volatility Index (14.28, down $0.04) ended lower and stayed in a tight half-point range.
We have some exciting news this morning as we have a “new section” we are introducing. We are profiling 7 earnings trades for next week and while we won’t take all of them, we may take 1 or 2 after doing the research this weekend. (continued…)
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