9:00am (EST)
There have been a few recent double-digit win streaks in the sporting world that has captivated the nation’s attention but the ones we like to watch involve the market. While we hope not to jinx things, the S&P 500 is on a 7-session streak while the Dow is one behind at 6 following Monday’s pop to fresh highs.
We mentioned the action was slow at first as the bears tried to make some noise but the slight dip was bought as the indexes moved higher throughout the second half of trading. Although the small-caps were a scratch as they just made it above the breakeven line before the close, all 4 major indexes finished higher to start the week for the second straight Monday.
The Dow gained 50 points, or 0.4%, to settle at 14,447. The blue-chips traded up to 14,448 and are on track to push 14,500 this week. Yesterday’s low was 14,373.
The S&P 500 added 5 points, or 0.3%, to end at 1,556 and at it high for the day. The index tested 1,547 after the open but is now less than 10 points away from its October 2007 closing high of 1,564. The intraday high for the S&P is 1,576.
The Nasdaq jumped over 8 points, or 0.3%, to close at 3,252. Tech kissed a low of 3,233 but held 3,225 and the close above 3,250 was money.
The Russell 2000 struggled but gained a hundredth of a point, or 0.01, to finish at 942.51 while the S&P 500 Volatility Index ($VIX, 11.56, down 1.03) fell 8% to 52-week lows after closing below 12.
One question we have pondered over the past few weeks is when will the S&P 500 pass the price of Gold? We aren’t sure on the exact date but we do expect it to happen over the next few weeks.
We mentioned this weekend we expect the index to trip 1,600 before a possible pullback but we aren’t so sure about Gold. The yellow metal closed at $1,578/ ounce yesterday and is struggling to hold the $1,580 level. We correctly predicted Gold’s back test to $1,550 in February but if resistance holds and there is another leg lower, there could be a test to $1,525-$1,475.
As we head to press, futures look like this: Dow (xx); S&P 500 (xx); Nasdaq 100 (xx).
We may add 2 more New Trades this morning after the open so be on the lookout if we take action on the first two candidates on our Watch List. Subscribers, check the Members Area for the updates.
