The market soared on Tuesday after better-than-expected earnings here at home while Spain’s bond auction attracted some interest. This lead to an extended rally as the bulls recovered the first wave of support while pushing resistance.
The Dow gained 194 points, or 1.5%, to close at 13,115. The blue-chips easily cleared 13,000 and made a run at 13,200 after kissing a high of 13,131. A move back above 13,200 would get 13,500 into play again.
The S&P 500 added 21 points, or 1.6%, to finish at 1,390. The index surpassed 1,375 at the open and traded to a high of 1,392 intraday. The next level of resistance is strong at 1,400 but if cleared the bulls could make another run at 1,425-1,450.
The Nasdaq popped 54 points, or 1.8%, to settle at 3,042. Tech reached a peak of 3,052 but closed below the 3,050 which seems to be the new battle ground between the bulls and bears.
The S&P Volatility index (VIX, 18.46, down 1.09) fell nearly 6% after bottoming at 17.58. The bulls were hoping to get below 17.50 by the close while the bears will try to push 20 again.
Futures are showing a slightly lower open this morning and look like this: Dow (-43); S&P 500 (-5); Nasdaq (-6). We opened a number of new trades yesterday so let’s go see where we are at. Subscribers, check the Members Area for the updates.