The market traded in a tight range on Monday before ending mixed with Tech showing strength while the Financial stocks took a step back following last week’s rebound. There were some lingering concerns over Greece which we mentioned but Moody’s (MCO, $38.87, down $0.14) decided to go back for seconds as they cut Portugal’s debt to “junk” later in the day.
This caused a little pullback late in the session but Moody’s continues to remind us of a lot of things we already know. We’ve never had a lot of respect for the ratings agency and let’s not forget Moody’s has their own skeletons in their closet they will need to deal with down the road.
The Dow fell 13 points, or 0.1%, to finish at 12,569 after dipping to a low of 12,540. The index managed to trade to a high of 12,601 which is where we said resistance would come into play before a possible test to 12,800. Short=term support is at 12,350.
The S&P slipped 2 points, or 0.1%, and settled at 1,338. The index traded flat for most of the session with a high of 1,341 and the low coming in at 1,334. Resistance is at 1,350 with support at 1,325. Both the Dow and S&P had their 5-session winning streaks snapped.
The Nasdaq, on the other hand, extended its winning streak to 6-straight after gaining 10 points, or 0.4%, to 2,825. We are looking for a test up to 2,850 with a possible run up to 3,000 if 2,875 is cleared.
Futures are pointing towards a lower open following China’s decision to raise interest rates this morning. Dow futures are down 45 points to 12,488 while the S&P futures are lower by 7 points to 1,329. The Nasdaq futures are showing a decline of 8 points to 2,364.
We have a lot to cover in our Members Area this morning so let’s get to it. Subscribers, check for the updates.