The day ends with the S&P 500 (SPX) posting a mild gain. An opening pop was followed by some midday weakness but buyers stepped in during the last two hours. The Dow Jones Industrial Average (DJIA) and Russell 2000 (RUT) followed similar courses. The Nasdaq Composite (COMP) differed in that it failed to make a push back into positive territory.
While the broad market action may have been flattish, the sector action was decidedly more up upbeat. A number of groups gained more than one percent with the Natural Gas Index (XNG), Broker/Dealer Index (XBD), S&P Retail Index (RLX), and Amex Networking Index (NWX) leading the charge.
As far as my overall takeaway for the week, it goes much along the same lines as what I discussed last night...
"What interests me the most though is the daily chart below of the S&P 500 (SPX). While today's gains weren't extraordinarily large, it does put the index right back in the "face" of that resistance zone. While a breakout out would be more encouraging, resiliency is the next best. When viewed from the mid-March lows, we have a short-term, stair-step uptrend in place. For that to continue, the top of the range has to be penetrated. If we roll over here, we are back to the range trading mentality."
As the updated chart below shows, we head into next week with the S&P 500 in a position to stage a breakout and continue the near-term uptrend. The question is whether traders will have the conviction to step in ahead of what looms. We have a full economic calendar ahead of us with an FOMC announcement and the monthly employment the biggies. It wouldn't surprise me to see the week get off to a bit of a slow start. Of course, I have been wrong before...
Have a great weekend!
Chart Courtesy of Thomson Financial
Chart Courtesy of Thomson Financial
| Index |
Index Value |
Point Change |
Percent Change |
| S&P 500 (SPX) |
1397.8 |
9.0 points |
0.65 percent |
| Dow Jones Industrial Average (DJIA) |
12891.9 |
43 points |
0.33 percent |
| Nasdaq Composite (COMP) |
2422.9 |
-6.0 points |
-0.25 percent |
| Russell 2000 (RUT) |
721.9 |
4.8 points |
0.67 percent |
| CBOE Market Volatility Index (VIX) |
19.51 |
-0.55 points |
-2.7 percent |
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