There was no role call at the White House as the zombies stayed away for another day while awaiting Air Force One’s flight back from Hawaii. AFO is, of course, the “corporate jet” our President uses to fly home on vacation and it didn’t leave the Aloha state until last night. There was no “emergency call” for the zombies to meet back in DC in 48 hours but they may start to straggle in once the rhetoric starts back up.
The market reacted to another day of indecision and traded on both sides of the ledger before finishing lower. The losses were contained, to a degree, but the bears were able to crack another layer of support for their third-straight win.
The Dow fell 24 points, or 0.2%, to settle at 13,114. The blue-chips made a run to 13,200 after trading to 13,174 on the open but also tested a low of 13,067. A break below 13,000 could get 12,800 into play.
The S&P 500 dropped 7 points, or 0.5%, to finish at 1,419. The index kissed a high of 1,429 before fading to a low of 1,416. Support will be at 1,410 and then 1,400 on further weakness while a close back above 1,425 would be bullish.
The Nasdaq declined 22 points, or 0.7%, to close at 2,990. Tech reached a peak of 3,018 before folding like a cheap lawn chair. The index held 2,975 but traded to a low of 2,983. Support managed to hold but a break below this level will get 2,950 back into play. The bulls will try to regain 3,000 but will need to take out 3,025 to regain the momentum..
The Russell 2000 gave back 6 points to end at 838 while the S&P Volatility Index ($VIX, 19.48, up 1.64) stayed below 20.
The next 2 trading days will be important for the bulls to stop the bleeding and make a run or they face the risk of a long winter. On Friday, the U.S. Treasury will begin using “accounting measures” to delay the zombies from hitting the $16.4 trillion debt ceiling. The fudge fixing will save us taxpayers $200 billion for about 2 months but an increase in the debt ceiling may have to be included in any Fiscal Cliff deal.
As we head to press, futures look like this: Dow (+18); S&P 500 (+3); Nasdaq (+6). Subscribers, check the members Area for the trade updates.