The bulls controlled much of the action on Tuesday although things got shaky in the afternoon session. The bears clawed their way out of a hole shortly after lunch and were nearly even before the bulls buried them for good by the close. The grave was shallow though as the major indexes finished well off their highs and below resistance.
The Dow added 34 points to close at 11,671 after trading to a high of 11,704. The index remains trapped between 11,600-11,700 but we are still expecting a move towards 12,000 – by the end of the month. If we don’t clear 11,700 and hold over the next week or two then we could be reaching a short-term top, or a trading range, so we are watching this closely. Support comes in at 11,500 and then 11,350 to the downside.
The S&P 500 tacked on 4 points to settle at 1,274 and snapped a three-session losing streak in the process (so did the Dow). We were looking for a close above 1,275 but it was close enough for government work. The index should push 1,300 with 1,250 being our support line.
Meanwhile, Tech continues to impress as the Nasdaq added 9 points to finish at 2,716. The index kissed a fresh three-year peak of 2,722 and we are planning for a run up to 3,000.
Futures are up strong this morning: Dow (+63), S&P 500 (+8), Nasdaq 100 (+12) so we should have a sweet open which means good news for our current trades. Subscribers, check the Members Area for the updates.