MomentumOptionsTrading.com Morning Update for 6/4/2014
Bulls Push Continued Highs, Bears Get Tuesday Win
Tuesday’s action is suggesting a lower to flat June but things could change depending on what comes out of Europe. Perhaps Wall Street is waiting to see if they “do whatever it takes” to get their economy into second gear.
The bears got a rare Tuesday win but at this point they will take whatever they can get. The bulls tried to push higher highs so my near-term fluff targets are still in play but Tech and the small-caps are struggling.
The Dow dipped 21 points, or 0.1%, to close at 16,722. The blue-chips traded to a low of 16,690 and were in negative territory the entire session. Support at 16,700-16,600 is holding up well but there would be risk to 16,400-16,350 on a close below the latter. Near-term resistance remains 16,800-17,000.
The S&P 500 slipped three-quarters of a point, or 0.04%, to finish at 1,924.24. The index bottomed at 1,918 and did make a slight trip into positive territory to 1,925.07. Support is at 1,909-1,909 and a close above 1,925 keeps 1,950-1,960 in the mix.
The Nasdaq dipped 5 points, or 0.1%, to end at 4,237. Tech opened below 4,125 at 4,222 and kissed green at 4,240 before a test to 4,215. Backup support at 4,000 held but the bears are eying 3,975-3,950 this week. The bulls need a close above 4,250 this week.
The Russell 2000 fell 3 points, or 0.2%, to settle at 1,126. The small-caps traded to 1,129 before fading to 1,118 during Wall Street’s lunch break. It was the second straight session the bears pushed the 200-day MA for their third straight win. A “death cross” is forming that could intersect at 1,125 and I have warned any closes below this level could be dangerous.
The S&P 500 Volatility Index ($VIX, 11.87, up 0.18). The index continues to nudge higher as the bears have won the past three sessions but 12.50 continues to hold. Yesterday’s high reached 12.13.
The market is leaving clues lower lows are coming but the bulls are still roaming. Perhaps June is setting up for a continued Charlie Brown trading range.
There could be a New Trade today in the midday update so make sure you check back between 12-1pm (EST) today! There could also be a Weekly Wrap alert as well.