Bulls Need a Win on a Scary Friday
It's Friday the 13th and things could get scary today if the bulls don't bounce back. We mentioned Friday's have been bullish of late but let's go over Thursday's numbers, first, before looking at how today's action could play out.
The Dow declined 104 points, or 0.7%, to end at 15,739. The blue-chips gave a weak effort on the open and made a 2-step journey to 15,845 before plunging to a low of 15,703 during our midday update. The bears couldn't quite get to 15,600 and the bulls need to clear 15,800 today.
The S&P 500 fell 7 points, or 0.4%, to settle at 1,775.50. The index traded down to 1,772 and gained nearly a point at the open before falling just below our downside target of 1,775 before moving into the close. There is risk down to 1,750 on a close below this level while a finish above 1,790-1,800 would be bullish for next week.
The Nasdaq slipped 5 points, or 0.1%, to close at 3,998. Tech traded to a low of 3,993 and ended below the 4,000 level in a choppy session. The high checked-in at 4,013 and a close above 4,025 today would be bullish while another close below 4K keeps 3,950-3,900 in play for today and next week.
The Russell 2000 advanced 2 points, or 0.2%, and went out at 1,103. The small-caps showed some strength after kissing a low of 1,099.67 and holding the 1,000 mark before pushing 1,107 ahead of the closing bell. There is still risk down to 1,075 while a close back above 1,110 would be sweet for next week.
The S&P 500 Volatility Index ($VIX, 15.54) touched 16.09 and held 15 after falling to a low of 15.21 late in the day. A close below this level would be bullish for next week but a test to 17.50 could come on further weakness.
We took some bullish index positions ahead of yesterday's closing bell and futures are up as we head to press: Dow (+25); S&P 500 (+3); Nasdaq 100 (+9).
Subscribers, check the Members Area for the updates and stay on your toes ahead of our midday update as we could have Profit Alerts and/ or additional New Trades!