We were looking for the bulls to continue their recent momentum and Tuesday’s session turned out well following Monday’s 3% pop. Of course, the Negative Nancy’s were calling for a pullback following the Dow’s 1,000 point climb off the lows and that they got. However, the bears were only able to take the blue-chips down while Tech and the Financial stocks held their weight.
Much of the nervousness was blamed on a key vote by Slovakia which held the market in check as the major indexes finished mixed.
The Dow fell 17 points, or 0.2%, to finish at 11,416. The index traded to a low of 11,365 which was just above short-term support at 11,350. This area was also prior resistance so 11,200 could come into play on a pullback. The bulls will try to push 11,600 as they continue their comeback from last Tuesday’s bottom.
The S&P gained a point, or 0.1%, to close at 1,195. The bulls made another run at 1,200 and came within spitting distance of breaking through after reaching a high of 1,199 point 24. If cleared, a quick run to 1,225 could be in the cards.
The Nasdaq added 17 points, or 0.7%, to settle at 2,583. Tech reached a peak of 2,587 as the bulls look determined to take out 2,600. Short-term support is at 2,550 then 2,500 and the index traded to a low of 2,551 yesterday.
Slovakia’s decision to approve a bill to strengthen a European bailout package came after the market closed and they rejected to sign-off on the bill. The sixteen other countries that use the euro have already agreed to the plan, but the bill requires unanimous support. It’s hard to imagine we are now talking about Slovakia but the market should get past this speed bump as they will vote again and should go along with “the plan”.
As we head to press, Dow futures are up 109 points to 11,439 while the S&P futures are higher by 12 points to 1,201. Nasdaq futures are advancing 28 points to 2,316.
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