Bulls Hold Lower Fibonacci Levels
The market bounced back on Wednesday following two days of heavy selling pressure as the bulls held lower levels of support following a slight dip at the open.
The bears are feeling comfortable and may take the rest of the week off if the bulls can keep some momentum but are on standby if upper resistance comes into play.
The Dow gained 48 points, or 0.3%, to close at 14,824. The opening dipped to 14,760 was followed by a triple-digit run to 14,867. The bulls will be trying to clear 15,000 ahead of the 3-day weekend while the bears would like to get the blue-chips under 14,600.
The S&P 500 added 4 points, or 0.3%, to settle just under 1,635. The index reached a high of 1,641 after testing 1,627 but still fell short of triggering 1,650. Current support at 1,625 stuck like glue and we wouldn't be surprised to see this range hold through Friday's close.
The Nasdaq jumped 14 points, or 0.4%, to end at 3,593. Tech held green from start to close after reaching 3,607 but failed to hold 3,600. There is still risk down to 3,550-3,500 while a close above 3,625 would be bullish heading into next week.
The Russell 2000 advanced 3 points, or 0.3%, to end at 1,016. The small-caps kissed 1,020 but had trouble pushing resistance that served as prior support at 1,025. The index will likely drift 1% higher of lower for the rest of the week while holding 1,000 and staying below resistance.
The S&P 500 Volatility Index ($VIX, 16.49, down 0.28) popped above 17 to 17.11 but the bears were unable to push 17.50. The bulls tried to get 15 in play but stalled at 16.10. A close above or below 15-17.50 will be the next clue for short-term direction.
As we head to press, futures look like this: Dow (+44), S&P 500 (+4); Nasdaq 100 (+13).