Bulls Take Heed as Greece Prompts a 125-Point Swing in Dow

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The Dow Jones Industrial Average (DJI) endured another session of up-and-down activity, but ended trading at its worst price in nearly four months. "We had some positive housing data this morning, but the market once again failed to hold on to its early gains," claimed Schaeffer's Senior Equity Analyst Joe Bell. "There are more worries about whether Greece will remain in the euro zone, and what will come of its June election. While many investors continue to flee the euro for the U.S. dollar, the equity markets are being weighed down by uncertainty."

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

  • Problems in Greece also prove detrimental for commodities .
  • What does the 50-day moving average mean to the S&P 500 Index ( SPX ) ?
  • The VIX solidified its loftiest perch in 2012 .
  • Plus, see what's cooking ahead of Facebook's ( FB ) Friday IPO .
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 12,598.55) tagged a session high of 12,722.63 this morning, but ended the day down 33.5 points, or 0.3%, just barely above its session low of 12,597.34. Today marked the lowest close for the Dow since Jan 18. Seventeen out of its 30 blue chips ended with deficits, as Bank of America ( BAC ) led the laggards with a 2.6% drop. General Electric's ( GE ) 3.3% jump paced the 13 outperforming issues.

The S&P 500 Index (SPX - 1,324.80) penetrated the 1,330 level by the time the dust settled, falling 5.9 points, or 0.4%. The Nasdaq Composite (COMP - 2,874.04) turned in the worst performance of its fellow benchmarks, peeling back 19.7 points, or 0.7%.

The CBOE Market Volatility Index (VIX - 22.27) gained 1.4% today, and ended above the 22 mark for the first time since Jan 17. The VIX settled below its session peak of 22.69, and touched its highest daily point in 2012.

Today's highlight : Although Wall Street caught an early lift from upbeat housing and industrial production data, stocks just couldn't maintain their positive momentum. "There isn't a lot to hold your hat on," Bell suggests, "as every bounce seems to be met with more selling pressure."

Turning to today's major market stories...

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

Oil futures prolonged their slide today, as a higher-than-predicted uptick in domestic crude inventories -- now at their highest level since 1990 -- and the political drama in Greece weighed on the commodity. Crude for June delivery was down $1.17, or 1.2%, to close at $92.81 a barrel -- its lowest settlement since Nov 2.

Gold futures reached their lowest close since July today, as the dollar continued its recent strength on anxieties that Greece could end its tenure as a euro-zone member. June-dated gold buckled $20.50, or 1.3%, to settle at $1,536.60 an ounce.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 12,598.55) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,324.80) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,874.04) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

For today's notable annual highs and lows, click here .

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.

Editor's Note: A prior version of this article's title noted an incorrect intraday point swing in the Dow. This has been corrected, and 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: AAPL , BAC , FB , GE , SPX

Schaeffer's Investment Research

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