Bulls Win the Month, Bears Win the Day as Investors Stay on the Sidelines

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"Because the Federal Reserve and the European Central Bank have meetings over the next two days, Wall Street simply had a buyers' strike," claimed Schaeffer's Senior Technical Strategist Ryan Detrick. "Although there was a move lower late in the day, it was one of those boring summer days. But that should come to an end as the rest of this week is full of market-moving events." Consequently, the Dow Jones Industrial Average (DJI) endured a relatively flat session, turning in a moderate loss on the day.

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

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

Although the Dow Jones Industrial Average (DJI - 13,008.68) maintained its perch atop the 13,000 level, the blue-chip barometer drifted 64.3 points, or 0.5%, lower by the closing bell. Twenty-one of the 30 components parked in the red, as The Home Depot, Inc.'s ( HD ) 2% slide paced the lagging majority. On the other hand, Pfizer Inc. ( PFE ) led the nine outperformers with an earnings-induced 1.4% upswing. The Dow stepped up nearly 1% over the past month.

The S&P 500 Index (SPX - 1,379.32) and the Nasdaq Composite (COMP - 2,939.52) followed the Dow into negative territory, but fared slightly better, as the SPX declined nearly 6 points, or 0.4%, while the COMP lopped off 6.3 points, or 0.2%. During July, the broad market benchmark increased 1.3%, while the tech-rich COMP eked out a 0.2% rise.

The CBOE Market Volatility Index (VIX - 18.93) added roughly 5% today, finally landing just below its session high of 19.09. The VIX marked its first daily close atop its 40-day moving average in over a week. For the month, the VIX jumped 10.8%.

Today's highlight : "The economic data was pretty good," nodded Detrick. "Coming on the heels of last week's better-than-expected second-quarter GDP number, today's Chicago PMI and consumer confidence numbers both showed that the economy might just have a pulse left after a string of disappointing data over the past few months."

Turning to today's major market stories...

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

Oil futures continued lower for a second day, as skepticism builds ahead of any action from the Federal Open Market Committee (FOMC) and the European Central Bank (ECB). A better-than-predicted rise in home prices, consumer confidence, and the Chicago PMI should have lifted black gold; however, the data weighed on sentiment that enough action will be taken by the central banks to spur economic growth. Crude for September delivery sank $1.72, or 1.9%, to $88.06 a barrel. For July, the commodity gained 3.7%.

Likewise, gold futures pulled back on dwindling hopes for any financial stimulus from the FOMC and ECB. After a week's worth of wins, August-dated gold dropped $9.20, or 0.6%, to land at $1,610.50 an ounce. The malleable metal inched higher by 0.4% for the month.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,008.68) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,379.32) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,939.52) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

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.



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: ADBE , HD , OPEN , PFE , SIRI

Schaeffer's Investment Research

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