Following its worst beating of the year on Monday, the bulls bounced back on Tuesday to recoup nearly all of the losses from the prior session and reclaimed support in the process. The 1% moves could be a warning sign of things to come later in the month or February’s “normal” pullback came all in one day.
The Dow added 99 points, or 0.7%, to end at 13,979. The blue-chips kissed a high of 14,013 but faded into the close. The bulls are still on track for 14,200 over the near-term but the bears will be gunning for 13,850 again which is serving as support.
The S&P 500 gained over 15 points, or 1%, to finish at 1,511. The index reached a peak of 1,513 and the close above 1,510 was a bonus. There is still a chance 1,475 comes into play if the bulls give up the 1,500 level again but we have been calling for a push to 1,525.
The Nasdaq jumped 40 points, or 1.3%, to settle at 3,171. Tech traded up to 3,178 and we wanted to see a close above 3,175 but the bulls did well by recovering the 3,150 level. There is still a chance the Nasdaq clears 3,200, especially if Apple (AAPL, $457.84, up $15.53) can keep some momentum.
The Russell 2000 advanced 9 points, or 1%, to close at 908 while the S&P 500 Volatility Index ($VIX, 13.72, down 0.95) fell 6% after trading down to 13.39.
We have a lot to cover inside our Members Area this morning as one of our trades could be in play at the open. We may also have action to take in the Weekly Wrap as there are 2-3 trades we may get into today.
As we head to press, futures look like this: Dow (-29); S&P 500 (-4); Nasdaq (-10).
Subscribers, check the Members Area for the updates.