9:00am (EST)
The bears did enough during the first half of trading on Monday to get the win as they held off the bulls’ during a steady second half comeback that fell short. While the final score wasn’t as close as it looked, the bulls did hold support which has to be respected.
The Dow dropped 36 points, or 0.3%, to finish at 12,736. The blue-chips traded down to 12,686 and we were looking for a close below 12,700. The bulls will be looking for a close above 12,800 while the bears are still digging for 12,600.
The S&P 500 slipped 2 points, or 0.2%, to settle at 1,352. The index broke below the 1,350 level shortly after the open and traded to a low of 1,346 by lunch. This opened the door for a possible test to 1,325 this week but the close above 1,350 still keeps 1,375 in play.
The Nasdaq fell 5 points, or 0.2%, to end at 2,931. Tech touched a low of 2,919 and we said a close below 2,925 would be bearish for today. The bulls still had trouble making a meaningful push towards 2,950 but that doesn’t mean momentum can’t change.
The Russell 2000 gave back 2 points, or 0.3%, and went out at 804. The low for the session was 801 and a break below 800 will get 780 in the picture. Short-term resistance is at 810 and then 820.
The S&P Volatility Index (VIX, 17.98, up $0.88) went unnoticed by the talking heads yesterday but did jump 5% and traded up to 18.32. We are in middle of a break above 20 which could catch a lot of traders off-guard or a push towards 15 which would be bullish for a summer rally.
Futures are showing a slightly higher open this morning and look like this: Dow (+32), S&P 500 (+2), Nasdaq 100 (+8).