MomentumOptionsTrading.com Morning Update for 5/20/14
Bulls Get 4th-Straight Monday Win
Following a dip at the open, the bulls rebounded to claim their fourth-straight win on Monday. The gains were limited but it was enough to keep the upper end of the current trading intact.
The Dow gained 20 points, or 0.2%, to close at 16,510. The blue-chips traded down to 15,442 on the open before pushing a high of 16,526. A close above 16,600 would be bullish for continued highs. Support remains at 16,400-16,350.
The S&P 500 added 7 points, or 0.4%, to settle at 1,885. The index traded below support at 1,872 to 1,872 before pushing a high of 1,886. Near-term resistance at 1,900 is still keeping the bears at bay.
The Nasdaq jumped 35 points, or 0.9%, to finish at 4,125. Tech stayed in positive territory throughout the day and pushed a high of 4,128 while holding the 4,125 level into the close. Resistance is at 4,150-4,200 with support holding at 4,100-4,075.
The Russell 2000 advanced 11, or 0.7%, to end at 1,114. The small-caps traded down to 1,099 shortly after the open but held support at 1,100. The bulls fell just short of clearing the 200-day MA at 1,115 and need to clear 1,125 this week to get their momentum back.
Ahead of the open, futures are mixed: Dow (+5); S&P 500 (-1); Nasdaq 100 (+1).