The good championships always go 10 rounds and after 7 weeks of getting bashed by the bulls, the bears are starting to land some blows of their own. Round 8 and this week has belonged to the bears but the bell doesn’t ring until 4pm. The bulls will need a serious comeback today to win Wall Street’s votes but even the judges are starting to get nervous.
The Dow declined 47 points, or 0.3%, to close at 13,880. The blue-chips traded to a low of 13,834 and finished just above the 13,850 level. Short-term support had been moving up but the close below 13,900 and yesterday’s low gets our 13,800 downside target in play. A close below 13,850 would be bearish for next week but if the bulls can add 20 points, worries could ease. A triple-digit gain plus 2 points would give them the weekly win.
The S&P 500 slipped over 9 points, or 0.6%, to settle at 1,502. We warned if 1,510 didn’t hold that 1,500 would come into play and Thursday’s low was 1,497. If the bears can scratch 1,495 then a test to 1,475 could come next week. A close back above 1,510 today would be bullish for a run back to 1,525.
The Nasdaq fell 33 points, or 1%, to end at 3,131. Tech dropped to a low of 3,118 and we mentioned in the Weekly Wrap if 3,150 failed 3,125-3,100 would be back on the map. From there it gets ugly. A close back above 3,175 would be bullish going into next week.
The Russell 2000 got slammed for 8 points, or 0.9%, to finish at 905. The small-caps held 900 as the low checked in at 900.48. Meanwhile, the S&P 500 Volatility Index ($VIX, 15.22, up 0.54) added another 4% following Wednesday’s 20% pop to clear 15 on the close. If 17.50 trips today, or next week, there could be some panic selling.
Futures are showing a higher start and look like this as we head towards the opening bell: (xx); S&P 500 (xx); Nasdaq 100 (xx). Subscribers, check the Members Area for the current updates.