The day ends with a mixed picture. The S&P 500 (SPX) and Dow Jones Industrial Average (DJIA) were "saved" by afternoon buying and posted mild gains. The Nasdaq Composite (COMP) posted a mild loss. The Russell 2000 (RUT) showed some moderate weakness.
The sector action was once again sporadic. We have a big jump in both the Amex Gold Bugs Index (HUI) and US Oil Fund (USO). The SPDR Homebuilders (XHB), streetTRACKS Gold (GLD), Oil & Gas Index (XOI), and Oil Service HOLDRS (OIH) were also strong. Meanwhile, we have a number of groups posting moderate losses.
Chart Courtesy of Thomson Financial
| Index |
Index Value |
Point Change |
Percent Change |
| S&P 500 (SPX) |
1277.7 |
3.2 points |
0.25 percent |
| Dow Jones Industrial Average (DJIA) |
11430.2 |
13 points |
0.11 percent |
| Nasdaq Composite (COMP) |
2380.4 |
-8.7 points |
-0.36 percent |
| Russell 2000 (RUT) |
725.3 |
-6.4 points |
-0.87 percent |
| CBOE Market Volatility Index (VIX) |
19.82 |
-0.60 points |
-2.9 percent |
As far as the charts below go, the lack of net movement today leaves us with the same message as yesterday - the SPX is still precariously perched on support while the DJIA remains trapped below resistance.
Chart Courtesy of Thomson Financial
Chart Courtesy of Thomson FinancialBefore I sign off for the night, I did want to post this comment from Brent -
"Nick, The VIX seems a bit low given current market levels and technicals, don't you think?"
To be honest, I don't have much feel for the CBOE Market Volatility Index (VIX) here. Over the years I have gravitated to only paying attention to it at the extremes. However, I am not saying that is the only/best way to look at it. That could simply be a mechanism for dealing with my own personal limitations. Whatever the reason, the end result is that it doesn't have much significance to me here. Anyone have any thoughts they would like to offer?
Copyright Schaeffer's Investment Research http://www.schaeffersresearch.com