9:00am (EST)
The bulls got off to an impressive start on Monday but the bears held down resistance and were able to grab some of the market’s pie by the closing bell. There were a couple of upgrades before the open that helped the blue-chips hold their steady gains but Tech and the small-caps were showing some weakness by midday which kept the rally in check.
The Dow advanced 78 points, or 0.6%, to finish at 13,515. General Electric (GE, $22.81, up $0.10), International Business Machines (IBM, $210.47, up $3.02) and Travelers (TRV, $69.07, up $0.81) were dancing with 52-weeks high for much of the session which helped the blue-chips pushed a high of 13,598 shortly after the open. However, the 161 point gain was cut in half by the close as resistance at 13,600 continues to be a headache. The index was able to hold 13,500 which was bullish but still faces risk down to 13,350.
The S&P 500 gained 4 points, or 0.3%, to settle at 1,444. The index reached a peak of 1,457 and was able to clear the 1,450 level but also gave up the majority of its gains as the session wore on. The close below resistance was slightly bearish and keeps 1,425 in play but the index held positive territory all day long which was slightly bullish.
The Nasdaq slipped 3 points, or 0.1%, to close at 3,113. Tech fell just short of clearing 3,150 as the high came in at 3,146.99 but by lunch, the index was in negative territory. The low for the session came in at 3,103 and it will be important for the bulls to hold 3,100 this week. A close above 3,150 keeps 3,200 in play.
The Russell 2000 added 3 points, or 0.3%, to end at 840 while the S&P Volatility Index ($VIX, 16.32, up 0.59) ended with a 4% gain after trading to a low of 15.13. The fact that the VIX stayed above 15 on the 1% pop at the open was slightly bearish as the index went out near its high.
Financial stocks held up well and if the bulls are going to rebound and challenge new highs, this sector will have to continue to show some strength (along with Tech). We have listed one of our favorite Financial Stocks on our Watch List this morning for a possible option play but we want a little more confirmation before going long.
Futures are showing a higher open this morning as we head to press. Dow futures are up 39 points to 13,476 while the S&P 500 futures are higher by 7 points to 1,443. The Nasdaq 100 futures are advancing 13 points to 2,801.
