Bears Win Another Monday

9:00am (EST)

If every day had been Monday over the summer and into September, the bears would be in good shape but unfortunately, the rest of the week has favored the bulls.

Futures were pointing towards a lower open Sunday night and yesterday’s economic news before the bell was a bummer which made it hard for the market to gain any momentum. Although we were looking for a higher close, there was some buying in the last 15 minutes of trading which could carry over into this morning’s open.

The Dow fell 40 points, or 0.3%, to finish at 13,553. The blue-chips opened with a 5-point loss and tried to get back to even within the first few minutes of trading. However, after getting to within a fifth of a point, the index spent the rest of the session drifting lower before bottoming at 13,526 late in the day. Including the first Tuesday of the month, the Dow has fallen 15-out-of-16 sessions to start the week.

The S&P 500 slipped 5 points, or 0.3%, to settle at 1,461. The index traded to a low of 1,457 but easily held near-term support at 1,450. The bulls are trying to clear 1,475 this week which would set them up for a run at 1,500 by the end of the month. The bears will need to crack two layers of support, first at 1,450 and then 1,425 before Wall Street gets nervous.

The Nasdaq dropped 8 points, or 0.3%, to end at 3,178. The index traded down to 3,168 late in the day but stayed above 3,150 which is near-term support. We are still expecting a move past 3,200 and up to 3,250 by month end and the bulls should be in good shape as long as support holds.

The Russell 2000 gave back 6 points, or 0.7%, to close just below 859. The small-caps have given us good clues as far as market direction and as long as 850 holds, the bulls should be good to go. The S&P 500 Volatility Index ($VIX, 14.59, up 0.08) was basically flat for the session and stayed below 15 after reaching a high of 14.92.

Futures are showing a slightly lower open this morning and look like this: Dow (-11); S&P 500 (-1); Nasdaq 100 (-2). Subscribers, check the Members Area for the updates.

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Bears Win Another Monday

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