9:00am (EST)
…if only briefly.
The bulls made another step towards serious resistance on Tuesday and either look poised for a jailbreak, or, they are throwing their last punches in a huge brawl that is going to end ugly.
We talked have talked extensively about the market’s moves since mid-October and we said last week the bulls are setting up for a possible big run heading into April. Although the glass is looking half empty for the investors who have been bailing on the market’s recent move up, it is only half full for those who are playing for a breakout. Of course, we are in the latter camp and are riding the bulls back to new highs. This is why we have a market.
The bears have to be disappointed with yesterday’s action because the headlines were tilted in their favor. Economic news was softer-than-expected and most earnings announcements and guidance came in below par. It didn’t matter. The bears didn’t bring enough artillery to the fight as the bulls quickly overpowered them and were back on track in less than an hour.
The Dow nearly pulled off a triple-digit gain but still added 81 points, or 0.7%, to settle at 12,279. The S&P 500 popped 9 points, or 0.7%, and closed at 1,319.
The Nasdaq advanced 26 points, or 1%, to finish at 2,756. We wanted to spend more time on Tech because the close above 2,750 was a beautiful thing. Although we aren’t out of the woods, yet, a run to 2,850 is looking better-and-better by the session. The 52-week high for the Nasdaq is 2,840 and we said a shot at 3,000 could be in the stars.
Of course, we are still bracing for a pullback at any given moment because nailing a top or bottom for any stock, let alone the market, is always tricky. We also didn’t plan for a 4-week trading range from mid-February that saw more volatility than an EKG. However, we did expect a pullback in February which is why we used longer-term options. And we recently opened some new trades to try and take advantage of the rally we have been expecting to come back. Hopefully, the market can make some nice gains today.
As we head to press, futures are pointing towards a higher open; Dow (+45), S&P 500 (+6), Nasdaq (+15). Subscribers, check the Members Area for the updates.
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