The market ended mostly lower on Monday after the bulls battled back to hold support which was prior resistance. The bears tried to push prior support at the open but were unable to hold the momentum as Tech led the charge off the lows.
The Dow dropped 39 points, or 0.3%, to finish at 13,169. The blue-chips opened at 13,204 but quickly fell below the 13,200 level and traded down to 13,112 before recovering half its losses. The Dow still faces further resistance at 13,350 but it is less than 2% away with support moving up. Despite the dip, yesterday’s low was still higher than last week’s low or 13,094.
The S&P 500 slipped 2 points, or 0.1%, to settle at 1,404. The index opened at 1,405 and kissed a low of 1,397 before reclaiming 1,400 shortly after Wall Street’s lunch break. The bears will try hard to push 1,375 this week but yesterday’s rebound still keeps 1,425 in play.
The Nasdaq gained 2 points, or 0.1%, to end at 3,022. Tech fell below the 3,000 level and bottomed at 2,999 before recovering and closing near its high. The rebound back above 3,000 could be a bullish sign for the rest of the week.
The Russell 2000 gave back 2 points to close at 799 but traded down to 791 after failing to hold the 800 level. The small-caps continue to display lower highs and lower lows which have kept our bullish foot off the gas. We have said the Russell has been acting funny lately and the small-caps usually lead in strong bull markets.
Meanwhile, the S&P Volatility Index ($VIX, 13.70, down 1.04) traded lower throughout the day and dropped 7% which is unusual and could be signaling a top for the market or a test to 10 is coming.
We may take action on a couple of trades on our Watch List but we want to see how the first 30 minutes go. With August options expiring this week, we may have the opportunity to try and make some quick profits so stay locked and loaded for a possible Trade Alert between 10am-11am (EST) if we take action.
Futures are showing a higher open this morning and look like this: Dow (+34); S&P 500 (+4), Nasdaq 100 (+10).
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