MomentumOptionsTrading.com Morning Update for 5/29/14
Bears Halt Losing Streak
The bears got their first victory in 5 after snapping a 4-session losing streak on Wednesday. No damage was done as the bulls easily held support but the suit-and-ties were once again flip-flopping as there was no follow through to higher highs.
The Dow dipped 42 points, or 0.3%, to finish at 16,633. The blue-chips traded to a low of 16,620 on the open and stayed in the red throughout the session. Support at 16,600 held. There was a final hour push to get back to even by the bulls that fell short by a point before the bears took over.
The S&P 500 slipped 2 points, or 0.1%, close at 1,909. The index tested 1,907 in early trading before spending much of the second half in positive territory. The bulls pushed a high of 1,914 before folding like a cheap lawn chair. A close below 1,900 could spook Wall Street. Resistance is now at 1,915-1,925.
The Nasdaq dropped a 12-pack, or 0.3%, to settle at 4,225. The bears pushed support at 4,225-4,200 after the open as Tech traded down to 4,216. The bulls went green by a point to 4,238, briefly, before losing steam.
The Russell 2000 fell 5 points, or 0.5%, to end at 1,136. The small-caps struggled from start to finish and bottomed at 1,132. Near-term resistance at 1,140-1,150 remains with support at 1,125.
The S&P 500 Volatility Index ($VIX, 11.68, up 0.16) edged higher for the second-straight session after trading up to 11.86. I’m watching for a close above the 12.50 level to confirm a possible short-term top for the market.
The portfolio is more bearish than bullish at the moment with another possible payday coming this week.
Heading into the open, futures look like this: Dow (+5); S&P 500 (+1); Nasdaq 100 (+1).