Monday’s slight market pullback / mixed action was pinned on political rhetoric with many of the talking heads worried about what was said, or done, during the political election and by whom. While the news was discoursing, I focus more on history and trends instead of the distractions. The goods news is the Dow closed just slightly lower to start the week with volatility staying below a key level of support.
The Dow dipped 8 points, or 0.04%, to end at 20,905. The blue-chips made a morning run to 20,955 after opening 2 points higher. Lower resistance at 21,000-21,200 held and the lower high than Friday’s trip to 20,980 was a slightly bearish signal. Fresh support at 20,900-20,800 easily held on the intraday dip to 20,885.
The S&P 500 slipped 4 points, or 0.2%, to finish at 2,373. The index traded just a point higher shortly after the open to 2,379 while failing resistance at 2,390-2,400. The fade 2,369 late in the session held upper support at 2,370-2,365. A close below the latter would be a yellow light.
The Nasdaq climbed a half-point, or 0.01%, to settle at 5,901. Tech conquered another all-time intraday high north of 5,915 with fresh resistance and fluff to 5,925-5,950 holding. Newly minted support at 5,875-5,850 easily held on the backtest to 5,888 during the second half of trading.
The Russell 2000 fell 7 points, or 0.5%, to close at 1,384. The small-caps opened lower and stayed underwater throughout the day with the bottom reaching 1,381. Upper support at 1,375-1,370 was defended and easily held into the closing bell. Resistance remains at 1,390-1,400.
The S&P 500 Volatility Index ($VIX, 11.34, up 0.06) tested a low of 11.03 about a half-hour after the opening bell with upper support at 11-10.50 holding. The tug-of-war over the 11.50 level remains in play along with resistance at 12.50-13.50. Yesterday’s high reached 11.72.