MomentumOptionsTrading.com Morning Update for 5/30/14
Bulls Seeing Shooting Stars
Johnny told his mama, hey, “Mama, I’m goin’ away. I’m gonna hit the big time, gonna be a big star someday”, yeah.
Mama came to the door with a teardrop in her eye. Johnny said, “Don’t cry, mama, smile and wave good-bye”.
Don’t you know that you are a shooting star, and all the world will love you just as long, as long as you are. – Bad Company
This classic was a nice fit for the current action on Wall Street and ahead of this morning’s opening bell as the bulls continue to push new highs. The bears were lingering throughout the day but a second half surge gave the bulls their fifth win in the past six sessions.
The Dow gained 65 points, or 0.4%, to finish at 16,698 on Thursday. The blue-chips tested 16,620 an hour into the session and easily held support at 16,600. The bulls fell 37 points short of the 52-week and all-time high but remain on track to push 16,800-17,000 once cleared.
The S&P 500 advanced 10 points, or 0.5%, to close at 1,920. The index held green throughout the session and went out at its high for the day. The bulls are close to triggering 1,925 and could push 1,950 on a close above this level. Support has moved up to 1,909-1,900.
The Nasdaq added 23 points, or 0.5%, to end at 4,247. Tech stayed positive throughout the day and came within striking distance of clearing resistance at 4,250. If topped, a run past 4,300 and up to 4,400-4,500 is possible.
The Russell 2000 skipped 3 points higher, or 0.3%, to settle at 1,140. The bears pushed 1,134 shortly after the open but the bulls cleared resistance into the close albeit by the slimmest of margins. Further hurdles remain at 1,150-1,160 and then 1,175. Support remains at 1,125.
The S&P 500 Volatility ($VIX, 11.57, down 0.11) was basically flat after trading in a range between 11.82-11.41. The bears are still trying to clear 12.50 while the bulls are eyeing single-digits.
Ahead of the open, futures look like this: Dow (-16); S&P 500 (-3); Nasdaq 100 (-4).