9:00am (EST)
The market followed its recent pattern of consolidating after a huge move as Thursday’s action mirrored Tuesday’s session to a “T”. The only difference was that the bears were the ones who were able to take 2-out-of-the-3 indexes, not the bulls. This essentially snapped their 3-day win streak but the bulls were able to hold support and the S&P 500 did manage to kiss 1,250 at the open.
The Dow fell 25 points, or 0.2%, and finished at 12,020. The index did break below the 12,000 level after touching a low of 11,974 but the bulls held on into the close. If anything, we would like to see 11,800 hold today if there is a pullback.
The S&P slipped 2 points, or 0.2%, and ended at 1,244 after reaching a peak of 1,251. A close above this level would get 1,275 back on the map while 1,225-1,200 should serve as short-term support.
Meanwhile, the Nasdaq gained a 6-pack, or 0.2%, and settled at 2,626. More importantly, Tech held 2,600 after testing a bottom of 2,611. The high was 2,636 and we would love to see a close above 2,650 today.
Of course, Europe aside, there was probably a little nervousness ahead of today’s Nonfarm Payroll report which came in better than expectations. We will cover the details this afternoon but the good report means excellent news for our current positions.
Futures were already up big time and held after hearing the good news. As we head to press, futures look like this: Dow (+126), S&P 500 (+13), Nasdaq 100 (+24).
We will be busy this morning as we will probably close a few trades into strength. We may also try to get into a NEW TRADE today if we can get our entry prices. The company could be on the verge of a major announcement over the next couple of months and shares could easily surge from a current $10.50 to over $15. Seriously.
This would be a nice 50% return but the options we are looking at could zoom upwards of 200%. Subscribers, check the Members Area for the updates and focus on the Watch List which is where we hope to pull our next winner. We will send out a Trade Alert by 11am if we pull the trigger so stay locked and loaded.