MomentumOptions.com Pre-Market Update for 6/29/2017
Once Again, Bulls Rebound
I mentioned Wednesday would be a crucial day for the Nasdaq with Tech teetering near the 6,150 level. Needless to say, the bulls answered the challenged and left the bears speechless as the index went out near session highs while recovering prior support and the 6,200 level. The bigger story, though, was the strength in the small-caps and the Financial stocks, as both look ready to challenge fresh highs.
The Dow zoomed nearly 144 points, or 0.7%, to close at 21,454. The blue-chips opened at 21,372 while trading to an intraday high of 21,478. Resistance at 21,500-21,600 held with a move above the latter leading to another mini breakout. Prior support at 21,400-21,350 will try to hold on any weakness with backup help remaining at 21,250-21,200.
The S&P 500 surged 21 points, or 0.9%, to finish at 2,440. The index also held positive territory throughout the session while reaching a peak north of 2,442. Lower resistance at 2,440-2,450 held into the closing bell with a move above the latter a bullish sign. Support is back at 2,425-2,420 with overshoot to 2,410-2,400 still a possibility.
The Nasdaq jumped 87 points, or 1.4%, to settle at 6,234. Tech opened higher at 6,173 but made a quick backtest to 6,144 within the first 30 minutes of trading. The 6,150 was “stretched” for the second-straight session but was easily recovered with fresh support now at 6,200-6,175. The late day run to 6,238 pushed prior resistance at 6,250-6,275 with a close above 6,300 a positive development.
The Russell 2000 zoomed 21 points, or 1.6%, to end at 1,425. The small-caps also held positive territory throughout the session while tapping an intraday high above 1,426. The close on lower resistance at 1,425-1,430 was a green light for higher highs up to 1,445-1,450 over the near-term. Fresh support is at 1,415-1,410 with risk to 1,400-1,395 still in play.
The S&P 500 Volatility Index ($VIX, 10.03, down 1.03) fell 9% after peaking at 11.49 at the start of trading. Near-term resistance at 11.50-12.50 held by a whisker before the fade to 9.76. Upper support at 10-9.75 held into the close with a move below the latter being another bullish development.
From desk to press, futures look like this: Dow (+38); S&P 500 (+6); Nasdaq 100 (+9).
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Amicus Therapeutics (FOLD, $9.76, up $0.04)
FOLD July 10 calls (FOLD170721C00010000, $0.50, flat)
Entry Price: $0.70 (6/22/2017)
Exit Target: $1.40
Stop Target: None
Action: Upper support at $9.50-$9.25 held on yesterday’s test to $9.53. Resistance is at $10-$9.75 with shares trading to a high $9.92 shortly after the open.
TherapeuticsMD (TXMD, $5.72, up $0.04)
TXMD August 7.50 calls (TXMD170818C00007500, $0.45, flat)
Entry Price: $0.50 (6/22/2017)
Exit Target: $1.00
Stop Target: None
Action: Near-term resistance is at $5.75-$6. Support at $5.50 held on the intraday fade to triple-nickels, or $5.55. I would like to see shares clear $6 this week or next.
iPath S&P 500 VIX Futures (VXX, 12.28, down 0.26)
VXX August 14 calls (VXX170818C00014000, $0.70, down $0.15)
Entry Price: $1.20 (6/15/2017)
Exit Target: $2.40
Stop Target: None
Action: Fresh support is at 12.25-12 with Wednesday’s new 52-week low reaching 12.19. Resistance is at 12.50-12.75.