The Dow dropped a 12-pack, or 0.1%, to close at 16,501 on Wednesday. The blue-chips saw a little green to 16,525 but spent much of the session in the red after a dip to 16,477. We talked about the bulls holding the 16,600-16,500 zone and like we mentioned, we couldn’t have asked for a better close. Resistance is at 16,800-17,000 if the bulls can clear and hold 16,600 today.
The S&P 500 slipped 4 points, or 0.2%, to finish at 1,875. The index made a fifth-point pop to 1,879.75 at the open and tested 1,873 a few times during the session. The snapshot close at 1,875 and support had us feeling good as the bulls should have some energy to push 1,900 over the near-term.
The Nasdaq gave back 34 points, or 0.8%, to end at 4,126. Tech spent all session under water but held support at 4,125 like a Chevy. The bears pushed 4,125.41 but the bulls will be looking to clear 4,175 and possibly push 4,200 by the weekend.
The Russell 2000 sank 8 points, or 0.7%, to settle at 1,147. The small-caps also stayed in negative territory throughout the trading session after kissing 1,146 a couple of times into the close. The close below 1,150 was a bummer but a beautiful disguise by the bulls as they easily held 1,140. We have said a close above 1,160 should get the shorts covering.
The S&P 500 Volatility Index ($VIX, 13.27, up 0.08) was subdued for a day as it traded in a tight half-point range while holding 13.50 and ending at its session low. Bingo.
We should get some nice pin action with our current trades as futures are looking up: Dow (+26); S&P 500 (+7); Nasdaq 100 (+36).