MomentumOptionsTrading.com Morning Update for 6/18/2014
Bulls Clear Resistance (Again)
The bulls are working on a 3-session win streak following another Tuesday win that has pulled them back above resistance. The bears are showing signs of weakening but they are still clawing and can strike quickly. Although the action has been flat, volatility could pick up starting with the Fed heads today and the rest of the week with June options expiring Friday.
The Dow darted 27 points higher, or 0.2%, to finish at 16,808. The blue-chips traded to a low of 16,732 on the open but were in a steady uptrend throughout the second half of trading after reaching a peak of 16,823. The index is 1% away from its recent all-time high of 16,970 and the close back above 16,800 was bullish. Support remains at 16,700-16,600.
The S&P 500 added 4 points, or 0.2%, to settle at 1,942. The index kissed a low of 1,933 and easily held support at 1,925 before closing above the 1,940 level. The bulls pushed 1,943 ahead of the closing bell but needs to clear 1,950 to get all-time highs in play again.
The Nasdaq soared 16 points, or 0.4%, to close at 4,337. Tech made a 10-point drop to 4,311 and held support at 4,300 before making a run to 4,350. The bulls touched 4,346 before some slippage into the close. A close above 4,350 would get the March 52-week high of 4,371 back in play.
The Russell 2000 zoomed nearly 10 points, or 0.8%, to end at 1,176. The small-caps dipped to 1,163 and held support at 1,160 before making a strong run past resistance. The index closed above the 1,175 level after testing 1,179 and puts the bulls back on the 1,200 path.
The S&P 500 Volatility Index ($VIX, 12.06, down 0.59) dropped nearly 5% and back below the 12.50 level. A close below 11.50 would signal higher highs are in store.
The current trades are performing super well as there are 6 trades up over 100%. I have locked-in half profits on a number of them and I mentioned there were New Trades coming.
I have one for today I like and want to see how shares open. Look for a possible new recommendation in the midday update but for now, let’s go check on the amazing gains we have in play.