The bears were trying for back-to-back wins for the first time since June 8 after starting Thursday’s session at a torrid pace. The bulls were behind the 8-ball from the jump and spent all day playing catch-up after falling behind big-time at the opening bell. However, after some heavy artillery, the market ended mixed as oil, economic news and commodities all played a part in a wild and volatile day on Wall Street.
The selling pressure was enough to break through key technical levels but the bulls managed to rebound after hearing Greece had agreed to a new austerity plan as outlined by the EU (European Union) and the IMF (International Monetary Fund). This gave the bulls a much needed lift as they try to hold on for the Weekly win.
The Dow declined 60 points, or 0.5%, to finish at 12,050. The index traded to a low of 11,874 (a 235 point drop) before reclaiming the 12,000 level by the final hour of trading. Look for a close just above 11,800 if the bears push support or just below 12,200 if the bulls rally into the weekend.
The S&P slipped 4 points, or 0.3%, to settle at 1,283. The index traded below 1,275 and appeared headed to a test of 1,250 but the bulls stopped the beat-down at 1,262. The bears did enough to rattle the cages and we would suspect the S&P to close just south of 1,300 or somewhere in between yesterday’s low and our 1,250 downside target. If 1,275 holds then next week could be bullish as it would appear the market has stabilized and is ready for a bounce.
The Nasdaq traded in a 60-point range before “adding”, yes, adding 17 points to finish at 2,686. Tech touched a low of 2,627 and was 2 points away from our downside zone of 2,625-2.600 which remains in play. If the bulls can take out 2,700 and close above this level then next week could get super interesting as the momentum would clearly be in their favor.
Futures were pointing towards a lower open this morning but turned on a dime after getting better-than-expected economic news. Dow futures are up 24 points to 12,000 ; S&P futures are higher by 4 points to 1,281; Nasdaq futures are up 10 points to 2,247. Subscribers, check the Members Area for the updates.