The bulls nearly got a hat trick on Wednesday but were denied a 3-session win streak into the final hour of trading. The losses were minimal following a tight trading range of less than 100 points on the Dow with volatility staying subdued. These were good signs and showed normal consolidation following the two-day surge to start the week. However, I would like to see higher highs into Friday, or a settling above fresh support ahead of the weekend on any pullbacks.
The Dow dipped 21 points, or 0.1%, to end at 20,975. The blue-chips made a run to 21,070 while topping Tuesday's peak at 21,026. Resistance remains at 21,150-21,200 with the all-time high at 21,169. A move above the latter opens up fluff to 21,400-21,450. Support at 20,800-20,700 held on the late day fade to 20,972.
The S&P 500 slipped a point, or 0.1%, to settle at 2,387. The index tested a high of 2,398 shortly after Wednesday's open with upper resistance at 2,390-2,400 holding. Continued closes above the latter gets record highs and fresh resistance at 2,425-4,250 in play. Near-term support remains at 2,370-2,365.
The Nasdaq gave back a quarter-point, or 0.0%, to close at 6,025. Tech traded to its lowest point of 6,021 during the first half of action with rising support at 6,000-5,950 holding. A move below 5,900 would likely signal a short-term top. The second half push to 6,040 set a new all-time intraday peak with fresh resistance and fluff at 6,075-6,100 still in play.
The Russell 2000 advanced 8 points, or 0.6%, to finish at 1,419. The small-caps slipped two points on the open to 1,409 with newly minted support at 1,400-1,395 standing strong. Upper resistance and my near-term fluff targets of 1,415-1,425 were tested and cleared following the intraday climb to 1,425.70. Continued closes above the latter gets 1,440-1,445 on the board.
The S&P 500 Volatility Index ($VIX, 10.85, up 0.09) reached its peak at 10.89 ahead of Wall Street's lunch break with near-term resistance at 11.50 holding for the second-straight session. Additional hurdles are at 12.50-13.50. Upper support at 10.50-10 was breeched but held on the trip to 10.39 during the last 30 minutes of trading.
I have updated the parameters of our ORCL trade and I set an initial Stop Limit on SNAP. I'm still looking to add bullish call options on continued momentum although I do have plenty of bearish trades I'm still tracking.
From desk to press, futures look like this: Dow (+15); S&P 500 (+2); Nasdaq 100 (+4).