8:00am (EST)
After a promising start, the bulls gave back all of yesterday’s modest gains in the final hour of trading despite better-than-expected economic news. Earnings were light and will be until the second week of April which is when first quarter earnings start to roll in. Geopolitical events were a non-factor although there was some concern on how much radiation is seeping into Japan’s waters. Elsewhere, Libya seems to be getting closer by the day to getting new leadership which helped bring oil prices down.
We weren’t surprised to see a tight trading range but we were a little disappointed with the close.
The Dow traded to a high of 12,272 before giving back 23 points, or 0.2%, to finish at 12,197. We were looking for 12,200 to stick but the index closed into its low as the closing bell sounded. Further support is at 12,000 but we are looking for a test to 12,350 then 12,500, first.
The S&P 500 dropped 3 points, or 0.3%, and settled at 1,310. We were glad to see 1,310 hold for the second consecutive session and there is further support at 1,300. Near-term resistance remains at 1,325.
The Nasdaq traded to a high of 2,754 and we were hoping for a close above 2,750. The index fell 12 points, or 0.5%, when the dust cleared and finished at 2,730. The close above 2,700 was good to see because we are expecting Tech to rebound following a month long selloff. Further support is at 2,650 while near-term resistance remains at 2,800-2,850.
We have a lot to cover in our Members Area this morning so we have to cut it short. Futures are pointing towards a slightly higher open; Dow (+20), S&P 500 (+2), Nasdaq (+4). Subscribers, check for the updates.
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