We had a feeling the bulls would battle back yesterday and we said in our 1pm update we wouldn’t be surprised to see a positive close for the market. Well, two-outta-three ain’t bad…
The market spent much of Tuesday’s session in red ink and was near its lows in afternoon trading before the bulls rallied in the final hour to make it a ballgame.
The Dow slipped 3 points to finish at 11,977 after being down as much as 80 points. The index traded to a low of 11,898 before rebounding and actually hit a fresh multi-year high of 11,986 at the open. All eyes are on Dow 12,000 and a break above this level could provide a little fluff up to 12,150, initially.
The S&P 500 was up less than a point and closed at 1,291 after trading to a low of 1,281. The index finished just off its highs and we were pleased to see the 1,290 level hold. Of course, we are waiting for 1,300 to crack and a possible run up to 1,325.
The Nasdaq advanced 2 points to settle at 2,719 after falling below the 2,700 level briefly. The index hit bottom at 2,697 before closing in the green as the bulls push for Nasdaq 3,000 continues.
If we do hit our targets today then we said there could be some fluff. More importantly though are at the next set of resistance levels that the indexes will quickly face despite a possibly bullish breakout today. This will be our next stage and battle ground and it’s too early to tell if the market continues higher, stays range bound, or corrects and pulls back a little. However, we have been doing some chart work so we are getting some good ideas but first things, first.
Futures are pointing towards a higher open this morning: Dow (+14); S&P 500 (+4), Nasdaq (+6). Hopefully, our trades can get a little pin action. Subscribers, check the Members Area for the updates.