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Cat Tierney
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  • Terrific Tuesday's Returns 0 comments
    Oct 23, 2013 11:29 AM

    9:00am (EST)

    The bulls returned to form on Tuesday following Monday's mixed session as they continued their push towards 52-week, decades and all-time highs. The slick talking pros and hedge fund gurus that have trailed the market all year are still calling for a pullback but the bears aren't listening. Perhaps they will in November as the bulls continue to own October.

    The Dow added 75 points, or 0.5%, to close at 15,467. The index traded to a high of 15,518 and tested resistance before backing off and holding 15,400. There is backup support at 15,350 and then 15,200 but a close above 15,500-15,600 should get new all-time highs in play again.

    The S&P 500 surged 10 points, or 0.6%, to settle at 1,754. The index reached another all-time peak of 1,759 and more importantly, held 1,750 into the close. We said a close above this level would clear the way for a run to 1,775-1,800. Support is at 1,725 on a break back below 1,750.

    The Nasdaq advanced 9 points, or 0.2%, to end at 3,929. Tech made a run at 3,950 after kissing 3,947 and the close above 3,925 was bullish and keeps 4,000 in the mix. Tuesday's low was 3,904 and a close below 3,900 wouldn't be an end to the rally - but 3,850 might.

    The Russell 2000 popped 3 points higher, or 0.3%, to finish at 1,115. The small-caps triggered 1,121 shortly after the open but fell 1% off its highs by midday to 1,111 before recovering to hold positive territory. A close above 1,125 keeps 1,150 on the radar while a dip below 1,100 needs to be watched carefully.

    The S&P 500 Volatility Index ($VIX, 13.33, up 0.17) closed higher in an up market day and could be what spooked Wall Street. The VIX kissed 13.92 just before the late morning pullback but traded down to 12.93 on the open before finishing flat. We will remind you again to ignore the chatter and use our quote "Don't Flinch Until 15".

    The Dow and S&P 500 held green all session long on Tuesday but there was some weakness in Tech and small-caps. This was a slight back test but needs to be watched. Futures are showing a lower open and look like this: Dow (-57); S&P 500 (-7); Nasdaq 100 (-14).

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