MomentumOptionsTrading.com Morning Update for 7/3/2014
Nonfarm Payrolls Lift Futures
The market traded sideways on Wednesday following a run at near-term resistance on the open as Wall Street awaited this morning’s Nonfarm Payrolls report. The end result was mixed heading into this morning’s event as the small-caps and Tech took slight hits.
The Dow gained 20 points, or 0.1%, to finish at 16,976. The blue-chips traded to a high of 16,986 following a 7-point drop to 16,949 in the first half-hour but the rest of the session was listless. The bulls would love to clear and hold 17,000 ahead of the holiday weekend while the bears would be happy with anything below 16,800.
The S&P 500 added a point, or 0.1%, to close at 1,974.62. The bulls made a push past 1,975 to 1,976 but couldn’t hold this level by the final bell. If cleared, a run to 2,000 could come in July while a drop below 1,960-1,950 might signal a short-term top.
The Nasdaq slipped a point, or 0.02%, and went out at 4,457. Tech reached a peak of 4,466 but missed clearing Tuesday’s high of 4,471 before fading to 4,450.87. Near-term support held at 4,450 by a point but there is risk to 4,425-4,400 if the bears get below this level. Otherwise, the bulls are looking at making a push past 4,500.
The Russell 2000 dropped a 6-pack, or 0.5%, to settle at 1,199.50. The small-caps kissed 1,207 on the open but faded to 1,198 into the closing bell. A move above 1,210 today would be bullish for a continued run at 1,225. A close below 1,190 would be bearish heading into next week.
The S&P 500 Volatility Index ($VIX, 10.82, down 0.33) tested its recent 52-week low of 10.34 after trading to a low of 10.56. Single-digits are still in the air on a continued rally while a close above 11.50-12.50 bears watching.
Futures look like this ahead of the open following a better-than-expected jobs report: Dow (+6); S&P 500 (-1); Nasdaq 100 (+4).
I will cover the numbers in the midday update. For now, let’s go check on the current trades.