MomentumOptionsTrading.com Morning Update for 6/26/2014
Shaky Support Holds
The bears made an attempt at cracking the second layers of support on Wednesday’s open but ran into a bullish brick wall. The bulls responded quickly and easily defended the weak attack as they regained half of Tuesday’s losses.
The Dow gained 49 points, or 0.3%, to finish at 16,867. The blue-chips traded to a low of 16,799.41 and held support at 16,800 before rebounding to push a high of 16,883. The index is less than 1% from clearing 17,000 and a pop past 16,900 this week could do the trick.
The S&P 500 added 9 points, or 0.5%, to close at 1,959.53. The bears pushed a 2-point loss to 1,947 before the bulls made a run past 1,960. A close above this level keeps 1,975 in play. The 1,950-1,940 level still needs to be watched in case yesterday’s action was just a back test to resistance.
The Nasdaq advanced 29 points, or 0.7%, to settle at 4,379. The dip to 4,339 easily held support at 4,325. The close above 4,375 keeps my December fluff targets of 4,400-4,500 in the mix.
The Russell 2000 jumped 9 points, or 0.8%, to end at 1,182. The small-caps slid 5 points to 1,168 and below support at 1,170 before clearing 1,175 again. The index ended near session highs and is back on track to test 1,200.
The S&P 500 Volatility Index ($VIX, 11.59, down 0.54) tested 11.37 but the bulls were unable to hold down 11.50. The bears are trying to clear and hold 12.50.
Ahead of the open, futures are up: Dow (+9); S&P 500 (+1); Nasdaq 100 (+1).