MomentumOptionsTrading.com Morning Update for 6/27/2014
The bulls battled back ahead of Thursday’s close to nearly get the win but more importantly, held support. The bears made another strong attack at the open and triggered lower lows but their efforts were once again wasted.
The Dow dipped 21 points, or 0.1%, to end at 16,846. The blue-chips fell below 16,800 after testing a low of 16,746 but recovered to hold support. The next 1% move higher or lower from here could be a great clue for how next week and July might play out.
The S&P 500 slipped 2 points, or 0.1%, to settle at 1,957. The index tried to clear 1,960 on the open after pushing 1,959.89 but quickly faded to 1,944. I have talked about 1,950-1,940 being a crucial zone for the bulls to hold and they have done so for 3-straight sessions.
The Nasdaq declined a point, or 0.02, to close at 4,379. Tech tumbled to 4,347 at the start of trading but made a steady uphill climb to recover 4,350-4,375. This was a bullish sign and keeps 4,400-4,500 on the radar.
The Russell 2000 gave back 2 points, or 0.2%, to close at 1,180. The small-caps fell 10 points to 1,172 after a tenth of a point pop into positive territory on the open. Support at 1,175-1,170 has held all week and the continued closes above 1,180 is also bullish.
The S&P 500 Volatility Index ($VIX, 11.63, up 0.04) traded to 12.51 but was basically flat for the second half of trading on Thursday. I have mentioned a close above 12.50 could lead to further weakness while a finish below 11.50 keeps single-digits in play.
Friday’s have been bullish for 7-straight weeks but the bears snapped Monday’s streak at 9. Today could be a spicy with the rebalancing of the Russell indexes.
Heading from desk to press, futures look like this: Dow (-32); S&P 500 (-5); Nasdaq 100 (-8).