Tech Shines in Bears Win
Super Tuesday took a breather as the bears won yesterday's session by taking 3 of the 4 major indexes. Tech was the lone bright spot on an overall down day but support held like a Chevy and volatility was subdued. There are still a number of high profile events slated for the rest of the week that could cause a breakout of breakdown as they play out and the possibility of a mini-trading forming in the indexes is also there.
The Dow fell 21 points, or 0.1%, to close at 15,618. The blue-chips dropped below support at 15,600 to a low of 15,522 but rebounded to push positive territory by midday. The high reached 15,651 but was 7 points shy of Monday's peak but the close above 15,600 keeps 15,800-16,000 in play. A close below 15,600-15,500 would be bearish and likely lead to a test down to 15,400-15,350.
The S&P 500 slipped 5 points or 0.3%, to settle at 1,762. The index bottomed at 1,755 by 10am and came within a point of reaching green several times in the second half of trading. Support at 1,750 is solid and a close above 1,775 keeps 1,800 on the radar.
The Nasdaq added 3 points, or 0.1%, to finish at 3,939. Tech flopped to 3,909 after the opening bell but held support at 3,900 while bouncing back above 3,925 an hour into the session. The bulls tried pushing resistance at 3,950 and came close to breaking through as they pushed a peak of 3,947. A close above this level could lead to a quick run to 4,000.
The Russell 2000 slipped 4 points, or 0.4%, to settle at 1,103. The small-caps traded to a low of 1,097 before recovering the 1,100 level shortly after the open and holding it the rest of the day and into the close. There is still risk down to 1,075 but as long as support holds then a run to 1,125 and new all-time highs are still on tap.
The S&P 500 Volatility Index ($VIX, 13.27, up 0.34) cleared 13.50 after touching 13.64 in the morning but was back and closed below this level after an hour into the session. This was a good clue the bears weren't going to be making much of a move and we are watching 14.50-15 to Paul Revere us.
As we head to press, futures look like this: Dow (+58); S&P 500 (+7); Nasdaq 100 (+12). If current levels hold we could be ringing the register again today!