Market Bends but Doesn’t Break

9:00am (EST)

Wall Street experienced another volatile session on Wednesday’s as the action produced major price swings that pushed both short-term support and resistance levels.

The Dow fell 7 points, or 0.05%, to finish at 12,496. The blue-chips kissed a low of 12,311 after opening at 12,501 but managed to make a trip into positive territory. The high for the session was 12,508 which represented a nearly 200-point swing. We mentioned the bears were looking for a close below Friday’s dip to 12,336 but they were unable to hold their gains. The bulls will be looking to clear 12,600 again today.

The S&P 500 gained 2 points, or 0.2%, to end at 1,318.86. The index fell below the 1,300 level about an hour into the session and traded down to 1,296 before rebounding. The bears are still pushing 1,275-1,250 while the bulls are looking to clear 1,325. Wednesday’s high was 1320.71.

The Nasdaq added 11 points, or 0.4%, and closed right on the 2,850 mark. We said the bulls needed to clear this level on the close before they could make a run at 2,900 but the bears tripped 2,800 again after pushing a low of 2,795. Friday and Monday’s low for Tech was 2,774 so keep this number in the back of your mind as near-term downside support.

We have added a few more stock candidates to our Watch List this morning as possible new option trade ideas but we are still waiting for the next trend to form. We said coming into the week the action would be choppy but that we expected a higher market by week’s end.

Futures are showing a nice pop at the open and look like this: Dow (+44), S&P 500 (+6); Nasdaq (+12).

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Market Bends but Doesn’t Break

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