Bulls Claim Victory in Shortened Session; Dow Jumps 72 Points

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After a very sluggish start to the pre-holiday session, the Dow Jones Industrial Average (DJI) finally got moving, ending at its highest level in nearly two months. "It was simply a light volume day, with very little news out there," observed Schaeffer's Senior Technical Strategist Ryan Detrick. "We've found these days tend to trend higher, and that's exactly what happened."

Keep reading to see what else was on our radar today:

  • How does a mid-week holiday usually pan out for stocks ?
  • Plus, selling climaxes and further proof that the market has reached a major bottom .
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 12,943.82) spent just a few minutes lower this morning, but made the shift into positive territory, closing the abbreviated session 72.4 points, or 0.6%, higher. Twenty-three of the 30 blue chips ended with gains, as Caterpillar ( CAT ) and Alcoa ( AA ) led the winning components with upticks of 3.3% and 3.2%, respectively. Home Depot's ( HD ) 2.6% tumble paced the seven losing issues.

The S&P 500 Index (SPX - 1,374.02)* edged out a victory today, adding 5.3 points, or 0.4%. Meanwhile, the Nasdaq Composite (COMP - 2,976.08) posted an increase of 24.9 points, or 0.8%, turning in the best performance of its fellow peers.

The CBOE Market Volatility Index (VIX - 16.65) didn't move much by the closing bell, ticking 0.2% lower.

Today's highlight : "After a shortened summer session, it'll be nice to have tomorrow off to enjoy the holiday with family and friends," said Detrick.

Turning to today's major market stories...

For today's activity in commodities, options, and more, head to page 2.

Following yesterday's sell-off, oil futures have charged decidedly higher today, reaching levels not touched since late May. The commodity is soaring on mounting tensions between Iran and the West concerning sanctions against the oil-rich nation. Black gold also caught a lift from a better-than-expected rise for U.S. factory orders in May. At 1:00 p.m. EST, August-dated crude is up $3.28, or 3.9%, to trade at $87.03 a barrel.

In similar fashion, gold futures reversed Monday's weakness and have surged higher today, eclipsing $1,600, on expectations for a European Central Bank (ECB) rate cut. Gold for August delivery is up $24.50, or 1.5%, trading at $1,622.20 an ounce, at 1:00 p.m. EST.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 12,943.82) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,370.81) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,976.08) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

Click the links for coverage on today's notable annual highs and notable annual lows .

SCHAEFFER'S MARKET POSTURE

At the end of every market day, the staff at Schaeffer's Investment Research reviews the trading day in detail, covering major events and key market developments. Don't miss this critical, timely and insightful report. If you enjoyed today's edition of Market Recap, sign up here for free daily delivery straight to your inbox.

*Editorial note, 7/5/12: The closing numbers for certain indexes (SPX, OEX, RUT, VIX) were corrected from earlier figures. We apologize for any confusion this may have caused.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: AA , CAT , GRPN , HD , KO

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