We wanted to wait until the market closed to give today’s mid-day update.
The market absorbed the Dubai news better than we thought and we said it would come down to how hard the bulls fought back or how hard the bears pushed. Judging by today’s action, it looks as though the bulls may have taken the bears best shot and they are still standing.
Everybody has been looking for a reason to sell the market and today’s big event could have been a lot worse. Granted, there wasn’t a lot of liquidity with the short session and the holiday but we have all weekend to digest what this news means over the near-term.
The Dow sank to a low of 10,231 and ended the day at 10,309, down 154 points. We had factored in a drop of 3% for the day and the market was down a little over half of that on average.
The fact that the Dow held 10,300 was impressive. This level acted as resistance and has now become support although we are teetering on both sides of that debate.
The S&P 500 slipped just below the 1,100 level and closed at 1,091, down 19 points. The low was 1,083 so 1,070 held. The Nasdaq dropped 37 points to close at 2,138 and traded to a low of 2,113. We held 2,100 which was another good sign.
We will be back Sunday night with a more in-depth look at today’s action and next week’s outlook. We have updated all of the current trades in the Members Area…