8:45am (EST)
We are still getting good vibes from the bulls and yesterday’s win showed some strength. When we woke up yesterday, we thought there could be one more test of support as futures were pointing towards a nasty open on soaring Italian and Spanish bond yields which were putting the bulls in a pinch. However, futures gradually improved, the sun starting shining, the coffee was tasting great, and economic news was rosy for the most part. Although the market finished off its highs, the early strength in Tech was a clue Tuesday would be a good day.
The Dow gained 17 points, or 0.1%, to close at 12,096. The blue-chips once again tested our 12,000 and 12,200 targets as the low came in at 12,001 while the high was 12,165. The chart work we showed you yesterday is still intact and they say a picture is worth a thousand words. We showed you the back test and how the index should reach 12,600 over the near-term so stick with the trend and we will let you know when it changes. In the meantime, the bulls need to push and hold 12,200 and then 12,350 for us to get there but the bears could take a few more swings at 11,800.
The S&P 500 was up a 6-pack, or 0.5%, and finished at 1,257. We knew 1,250 would fall at the open and we were impressed the low only came in at 1,244 yesterday. The higher highs (1,264 yesterday) and higher lows continue to point towards a run at 1,300 if the bulls can clear 1,275 but the S&P could still test 1,225 if the bears keep clawing.
The Nasdaq surged 29 points, or 1.1% to settle at 2,686. Tech traded below near-term support at 2,650 after kissing a low of 2,644 but made a run at 2,700, again, late in the day. After peaking at 2,730 last Tuesday, the index has struggled to reclaim this level but Apple’s (AAPL, $388.83, up $9.57) pop was positive and another feel-good sign the market is going higher.
We were hoping Dell (DELL, $15.63, up $0.31) was going to say something good after the close last night as the company announced earnings. Nope. They dropped the ball after missing sales expectations and lowered their full-year outlook in the process.
Dell doesn’t quite have the impact on Tech it once did and share were only down 8 cents in after-hours trading. This morning they are at $15.28, down $0.38 in pre-market action. However, Dell will be the least of Wall Street’s problems as futures are pointing towards a rough start for today’s session and look like this: Dow (-84), S&P 500 (-13), Nasdaq 100 (-14).
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