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Flat Action Ahead of Apple's (AAPL) Numbers
The market traded in a tight range on Tuesday as Wall Street awaited Apple's (AAPL, $418.99, down $7.32) earnings announcement after the close. The stock is a heavy component on the indexes and will sway market direction today and perhaps why traders were a little hesitant to take positions overall. Expectations were super low Apple would beat expectations but they did. We will talk about their earnings in our midday update but it should be good news for the bulls and today's session.
The Dow gained 22 points, or 0.1%, to finish at 15,567 on Tuesday. The blue-chips traded to a high of 15,604 on the open before giving back all of its gains to trade down to 15,544 (down a point) shortly afterwards. The index was able to hold green throughout the remainder of the session and tested 15,600 late in the day and was a bullish sign. Next up is a possible push to 15,800-16,000. Support remains 15,400-15,350.
The S&P 500 slipped 3 points, or 0.2%, to settle at 1,692. The index kissed another all-time intraday high of 1,698.78 before testing a low of 1,691. The bulls have come too far not to ring the register at 1,700, and should, as long as support holds at 1,685-1,675.
The Nasdaq dropped 21 points, or 0.6%, to end at 3,579. Tech traded up to 3,606 after the opening bell but quickly faded before bottoming at 3,576 just before the close. Support at 3,575 continues to hold like a Bob Segar song and should recover 3,600 on the Apple news. If not and the index closes below 3,575 there could be trouble ahead.
The Russell 2000 dipped a point, or 0.1%, to close at 1,052. The small-caps charged to another all-time intraday high of 1,056.86 before falling back to test support at 1,050 after trading to 1,050.87. We believe the index still has another 2% in the tank for a run to 1,075 as long as support at 1,050-1,040 holds up.
The S&P 500 Volatility Index ($VIX, 12.66, up 0.37) was up 3% after kissing 13.06. No need to get cautious until 13.50 trips as the bulls look to push 11-10 over the near-term.
Side Note: We talked about Gold testing $1,350 and yesterday's high checked-in at $1,348.70. This is a crucial level as we could see a breakout to new highs and maybe, a big maybe, run to $1,400-$1,425. If resistance holds here for the rest of the week, look out below.
As we head to press, futures look like this: Dow (+1); S&P 500 (+2); Nasdaq 100 (+12).
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