The bulls held ground on Wednesday as the market finished mixed with a slight gain in Tech. Although yesterday’s economic news wasn’t the best, and the Financial sector lagged once again, the bears were unable to break the first wave of support we have been outlining over the past few weeks.
The Dow fell 15 points to close at 11,007 and was trading slightly below the 11,000 level going into the final hour before rebounding a bit. Over half of the Dow blue-chips finished in the red as McDonald’s (MCD, $78.37, up $0.95) lead the way for the ones that finished higher. Speaking of Mickey D’s, the 52-week high is $79.90 and a break above $80 could get shares moving but they can’t seem to break resistance.
The S&P 500 traded in a tight range before finishing a quarter-of-a-point higher to settle at 1,178. The index held 1,175 which was a key as it also held support.
The Nasdaq added 6 points and closed at 2,476 but is having trouble clearing the 2,500 level which was support and is now acting like short-term resistance. The index traded up to 2,486 and we are looking for a close back above 2,500 to get the rally going again.
We left you hanging yesterday on the Dendreon (DNDN, $35.87, flat) news but trading didn’t resume in the stock until after the market was closed. Medicare approved coverage of the company’s drug, Provenge. Shares were up $3 in after-hours trading last night and have held.
It looks as though the bulls are going to run higher as the Dow futures are showing an 87 point gain and are at 11,082 while the S&P 500 futures are higher by 12 to 1,190. The Nasdaq 100 futures are up 25 points to 2,122. It’s gonna be a good day, folks!
We have a TON of information we need to cover this morning and quite a few of our trades are set to show some nice gains. We have also made a new video for those of you who have purchased our option trading course manual, How to Trade Options on Momentum Stocks, which will be released later this morning.
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