Bulls Get Monday Win
The bulls nearly made a full recovery following the pullback on Monday’s open but lost the small-caps to the bears by the closing bell. The overall action was slightly bullish but there are bearish signs still developing that need to be watched.
The Dow added 17, or 0.1%, to close at 16,530. The blue-chips traded to a low of 16,377 and were able to hold the 16,350 level before bouncing to a high of 16,547. Resistance at 16,600 still remains and needs to be cleared on the close before the bulls can eye 16,800-17,000.
The S&P 500 gained 3 points, or 0.2%, to settle at 1,884. The bears pushed a low of 1,866 after the bulls failed to hold 1,875 but couldn’t crack 1,860. The index needs to clear and hold 1,885 before mapping out another run at 1,900. Monday’s peak reached 1,885.51.
The Nasdaq advanced 14 points, or 0.3%, to end at 4,138. The opening dip below 4,100 to 4,086 was quick and swift as Tech recovered positive territory within the first hour. A trading range pursued afterwards before the index went out near session highs.
The Russell 2000 slipped 2 points, or 0.2%, to finish at 1,126. The small-caps opened in the red and kissed a low of 1,115 on the open before rebounding to hold 1,125. The bulls missed pushing green by a point and need to clear and hold 1,335-1,140 today to keep the bears at bay.
The S&P 500 Volatility Index ($13.29, up 0.28) cleared 13.50 after opening at 13.90 and made a run to 14.20 before settling down. No worries until 15 and THEN 17.50 clears on any closes.
Tuesday’s have been terrific to the bulls over the past 7 weeks and they cleared the first hurdle by getting a Monday win. The second hurdle for the week is extending the Tuesday win streak to 8.
Futures look like this ahead of the open: Dow (+24); S&P 500 (+3); Nasdaq 100 (+5).