The Dow stretched its Tuesday winning streak to 15 as the bulls won their third-straight session while pushing resistance and the top of the current trading range. The gains on Tuesday’s have accounted for 70% of the blue-chips advance this year but yesterday’s pop was nearly wiped out in less than 2 minutes after an erroneous headline claimed there had been an attack on the White House.
The volatility came 30 minutes later following our midday update after a hacker gained access to the AP’s (Associated Press) Twitter account. The report said a bomb or explosion had occurred at headquarters and that the President was injured. We were watching the tape and started to scramble to find out why the market was plunging but the indexes had recovered by the time we figured out why. It was only a hiccup as the market quickly resumed its uptrend into the close.
The Dow gained 152 points, or 1.1%, to settle at 14,719. The blue-chips kissed a high of 14,721 but fell short of clearing the 14,800 mark that is current resistance. The dip to 14,554 after lunch knocked the index back 150 points for a loss of 13 but was quickly recovered on the false tweet.
The S&P 500 added 16 points, or 1%, to finish at 1,578. We mentioned a close above 1,575 would be bullish for another possible push to 1,600 and the high checked in at 1,579.58. The index held green all session long despite the afternoon dip back down to 1,566.
The Nasdaq jumped 36 points, or 1.1%, to end at 3,269. Tech made a run past 3,275 after reaching a peak 3,275.89 but was unable to hold this level into the close. We said there was a good chance 3,300 and new highs are tested on a close above this level but the 3,250 level still needs to be watched on any pullback. Yesterday’s drop from 3,270 to 3,247 on the false Twitter posting shows how touchy the market is to headline risk.
The Russell 2000 was up 14 points to 929 and easily cleared 920 in the process while the S&P Volatility Index ($VIX, 13.48, down 0.91) dropped 6%. We said yesterday morning a close below 13.50 on the VIX and over 920 on the small-caps would be golden for the bulls ahead of Apple’s (AAPL, $406.13, up $7.46) numbers which we will cover today in our midday update.
Shares reached an after-hours high of $425 but fell $3 on the unofficial close. As we head to press shares are at $392, down $17.
Futures are showing a mixed open and look like this: Dow (+11); S&P 500 (-1); Nasdaq 100 (-2). Subscribers, check the Members Area for the updates.