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Cat Tierney
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  • Bulls Get 2-Straight Monday Win 0 comments
    Nov 12, 2013 11:54 AM

    Bulls Get 2-Straight Monday Win

    9:00am(EST)

    The bulls got their second Monday win albeit by the slimmest of margins to keep the current uptrend intact. Economic news will be light this week and while earnings are still carrying on, most of the major companies have already checked-in with Wall Street. The Fed zombies will be speaking throughout the week so there could be some "taper" risk tied to their comments but the current action is still suggesting a higher market.

    The Dow gained 21 points, or 0.1%, to finish at 15,783. The blue-chips came within a 6-pack of piercing last week's all-time high of 15,797 after trading down to 15,737 on the open. A close above resistance at 15,800 should get our yearend target (from February) of 16,000 in play. A close below 15,600 would be bearish this week.

    The S&P 500 added a point, or 0.1%, to end at 1,791. The index kissed 1,767 at the start of trading (down 3) but pushed 1,775 after trading up to 1,773 afterwards. If the bulls can clear and hold 1,775 we have said a trip to 1,800 would come. A close below 1,750 needs to be watched as it could lead to further damage.

    The Nasdaq advanced a half-point, or 0.01%, to settle at 3,919.79. Tech tested support at 3,900 but held at 3,904 before bouncing back and reaching a peak of 3,925.34. A close above 3,925 gets 3,950 back on the map and if cleared a run to 4K again.

    The Russell 2000 popped 1.5 points higher, or 0.1%, to close at 1,101.50. The small-caps touched a low of 1,096 but reclaimed the 1,100 level shortly before lunch and held it for the remainder of the session. The high came at 1,102.86 but well off resistance at 1,110 and then 1,125.

    The S&P 500 Volatility Index ($VIX, 12.53, down 0.37) remained subdued and traded in the red all day after bottoming at 12.40. We have been calling for a drop to 12.50 for the VIX on a continued rally and it triggered on Monday. Our chart work from the weekend is saying the VIX could fall below 12 and test the 52-week low of 11.05 if the bulls breakout to fresh highs.

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