The month of August is nearly over, and with yesterday’s flat action, investors are counting down the days. The market has managed to inch its way higher all month but yesterday’s mixed finish was just another typical Monday.
The Dow fell for the twelfth time out of the last 13 Mondays while the S&P 500 and Nasdaq have managed to stay under a 1% daily move since the beginning of the month. As the tight trading range continues, it will mean a much larger breakout or breakdown in the major indexes.
The Dow fell 33 points, or 0.25%, to close at 13,124. The blue-chips managed to reach a peak of 13,176 intraday while the low came in at 13,115.
The S&P 500 slipped a point, or 0.05%, to settle at 1,410.44. The index traded in a 7-point range, reaching 1,416 shortly before lunch, before testing 1,409 into the closing bell.
The Nasdaq was up 3 points, or 0.1%, to end at 3,073. Tech topped out at 3,085 and nearly finished in the red after trading down to 3,068 minutes before the close.
With Wall Street on vacation for the rest of the week, we would expect a continued tight range with both support and resistance being tested although we didn’t like yesterday’s close.
The charts are showing clear lines in the sand for both the bulls and bears and our portfolio will be light and ready for action as we wind down our September options and look ahead to the October and November chains for our next batch of winners. We will continue to build the Watch List this week and we expect to be busy with possible Trade Alerts so stay focused.
You can also follow us on Twitter or signup for our Text Alerts by following the instructions in our Members Area. This will alert you the second we send out an email or update the website.
Futures are showing a slightly lower open and look like this as we head to press: Dow (-36); S&P 500 (-4); Nasdaq 100 (-5). Subscribers, check the Members Area for the current trade updates and be sure to read our Special Note.