March Lows in Play
The bulls were looking good for the first half of Wednesday's action as upper resistance was tested. However, the second half fade to session lows led to a mixed session with the broader market pulling back but Tech and the small-caps closing slightly higher. The bears are still on the verge of causing chaos as the blue-chips fell below their late March intraday low.
The Dow tumbled 118 points, or 0.6%, to finish at 20,404. The blue-chips made a run to 20,546 with resistance at 20,600-20,650 easily holding. The fade to a session low of 20,379 into the closing bell split support at 20,400-20,350. The close below the previous March low of 20,412 was a bearish development and gets 20,200-20,000 in play if 20,350 cracks.
The S&P 500 slipped 4 points, or 0.2%, to end at 2,338. The index traded to a high of 2,352 but failed lower resistance at 2,360-2,370 shortly after the open. I mentioned backup support at 2,325-2,300 continues to a be a possibility if 2,335 fails to hold and was yesterday's low.
The Nasdaq advanced 13 points, or 0.2%, to settle at 5,863. Tech made a morning journey north of 5,894 to push upper resistance at 5,875-5,900 but levels that held despite the bulls holding court all session. Support is at 5,825-5,800 on another move below 5,850.
The Russell 2000 climbed 5 point, or 0.4%, to close just under 1,367. The small-caps also held positive territory throughout Wednesday with the high checking in at 1,376. Upper resistance at 1,370-1,375 and the 50/100-day moving averages were cleared but also levels the bulls couldn't nail down. Support is at 1,360-1,350.
The S&P 500 Volatility Index ($VIX, 14.93, up 0.51) cleared upper support at 13.50-12.50 after kissing 13.46 intraday. The late day surge and 10% rebound off the low tapped a high of 15.15. Resistance is at 17-17.
From desk to press, futures look like this: Dow (+6); S&P 500 (+1); Nasdaq 100 (+3).