Seeking Alpha

Cat Tierney's  Instablog

Cat Tierney
Send Message
Assistant Editor Nextoptions.com
My company:
Nextoptions.com
  • Bulls Push Next Waves Of Resistance 0 comments
    Sep 10, 2013 12:15 PM

    Bulls Push Next Waves of Resistance

    9:00am (EST)

    The roadmap we laid out for September has been followed perfectly by the bulls as they were able to push the next waves of resistance on Monday. We mentioned a rally could last through midweek and Wednesday's close and the back half of the week are setting up to be explosive and exciting sessions.

    The Dow added 140 points, or 0.9%, to finish at 15,063. The blue-chips traded to a high of 15,088 and easily held resistance at 15,000. Our near-term target has been 15,200 for the index before a possible pullback but a close above this level could change our mind. The bulls have some breathing room down to 14,800 if 15,000 fails to hold.

    The S&P 500 gained 16 points, or 1%, to settle at 1671. The index reached a peak of 1,672.40 and made a nice run at 1,675 that needs to be cleared before a push to new highs can happen. Near-tem support is now at 1,650 and another close below this level would be bearish.

    The Nasdaq jumped 46 points, or 1.3%, to end at 3,706 - and a new 52-week high. Tech was building strength all day and reached a peak of 3,708. The index is now just 3% away from our year-end prediction of 3,800 we called for back during the first week of February (golf clap).

    The Russell 2000 surged 16 points, or 1.6%, to close at 1,046. The small-caps made a strong push past 1,040 and went out at their high while falling just short of resistance at 1,050. If cleared, the 52-week and all-time high of 1,063.52 could trigger.

    The S&P 500 Volatility Index ($VIX, 15.63, down 0.22) traded just past 16 on the open before falling to 15.22 late in the day. We have repeatedly said the bulls will need to get the VIX below 15 in order for the market to make a run at new highs but this is no time for a cigar as the index was nearly unchanged. The VIX could get to 13.50 on a close below 15 that would push the S&P towards 1,700 but something feels funny. A close above 17.50 could come from nowhere and still cause chaos so keep this in mind.

    We are looking to take profits in a couple of our September plays this week and we could have a Profit Alert after the open depending on how Tech does.

    As we head to press, futures look like this: Dow (+84); S&P 500 (+10); Nasdaq 100 (+21). Subscribers, check the Members Area for the updates.

Back To Cat Tierney's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.