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