We mentioned this week could be choppy but that we expected a trading range to develop before the bulls push another 2% higher. Following Monday and Tuesday’s 1% moves, yesterday’s trading was like watching paint dry. The talking heads and Wall Street pros continue to call for a pullback after nearly 6 weeks and 1,000 Dow points later. Sooner or later they will be right but we still believe the indexes will push new highs before we get the 5%-10% pullback that everyone has been waiting for.
The Dow added 7 points, or 0.05%, to end at 13,986 on Wednesday. The blue-chips traded up to 13,991 but failed to crack the 14,000 level which is serving as short-term resistance. The low for the day came in at 13,913 but support is moving up as the blue-chips have made higher lows since Monday’s pullback to 13,866.
The S&P 500 gained a point, or 0.05%, to settle at 1,512. The low checked-in at 1,504 and the close above 1,510 again was bullish. We still believe the bulls can push 1,525 or 1,550 as long as current levels hold.
The Nasdaq slipped 3 points, or 0.1%, to finish at 3,168. Tech struggled to clear our next go target of 3,175, falling short at 3,174.82 but did hold 3,150 after the bears pushed a low of 3,157.
The Russell 2000 advanced 3 points, or 0.3%, to close t 911.29. The small-caps are just under 2 points from setting fresh 52-week and all-time highs again. The high of 912.75 was set last Friday. Meanwhile, the S&P Volatility Index ($VIX, 13.41, down 0.31) ended near its session low of 13.34.
Futures are showing a flat open and look like this: Dow (-1); S&P 500 (unch.); Nasdaq 100 (+1). We have a lot to cover today, including one trade that could be in play at the open. Subscribers, check the Members Area for the updates and be sure to set limit orders to get the best fill prices on another potential triple-digit winner.