MomentumOptionsTrading.com Morning Update for 6/6/2014
The bulls cleared one major hurdle on Thursday and were facing a huge test ahead of this morning’s open.
The Dow jumped 98 points, or 0.6%, to settle at 16,836. The blue-chips traded down to 16,709 shortly after the open but support at 16,700-16,600 has been building a floor. The index traded to a high of 16,845 and is just 1% away from triggering 17,000.
The S&P 500 soared 12 points, or 0.7%, to end at 1,940. The index touched a low of 1,922 in the first 30 minutes of trading but I have been saying the lower lows and the hold above 1,925 could power a push to 1,950. Thursday’s all-time reached a peak of 1,941.74.
The Nasdaq zoomed 44 points, or 1.1%, to settle at 4,296. Tech tested 4,241 but easily recovered the 4,250 level and made a strong run at 4,300. I mentioned the continued closes higher and surge above 4,250 could lead to a run to 4,300 and 52-week highs. Thursday’s intraday high reached 4,299.50. Imagine that.
The Russell 2000 rocketed 23 points, or 2%, to settle just below 1,154. The small-caps traded to a low of 1,128 and said a near-term goodbye to 1,125. I talked about the push and closes above 1,140 last week was suggesting a pop past 1,150 and up to 1,175. So far, so good.
The S&P 500 Volatility Index ($VIX, 12.68, down 0.40). The bears pushed 12.34 at the start of trading but I continued to remind readers to stay relaxed until 12.50 cracks. The bulls need to get below 11.50 ahead of the weekend to confirm possible higher highs into next week.
I will cover this morning’s NonFarm Payroll report in the midday update. Futures have moved higher and look like this after the news was just released: Dow (+30); S&P 500 (+3); Nasdaq 100 (+6).
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