"It's undoubtedly clear that the past week and a half has been
pretty unexciting," said Schaeffer's Senior Technical Strategist
Ryan Detrick. "But after today, everyone is scratching their heads
as to why exactly we just rallied. The reason can be found in some
words of wisdom that are older than most of us reading this: never
short a dull market." Today's upswing pushed the
Dow Jones Industrial Average (DJI)
decidedly higher today; at its intraday peak, the blue-chip
barometer was up more than 104 points.
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
The
Dow Jones Industrial Average (DJI - 13,250.11)
soared as high as 13,269.35 today -- its best price in three
months. By the closing bell, the Dow pared its gain slightly, and
ended the session up 85.3 points, or roughly 0.7%. This marked the
index's loftiest daily settlement since May 2. Twenty-three of the
30 components posted wins, with a 9.6% earnings-induced rise for
Cisco Systems, Inc. (
CSCO
) leading the way. On the other hand, Wal-Mart Stores, Inc. (
WMT
) paced the underperforming issues with a 3.1% loss. Kraft Foods
Inc (
KFT
) remained at breakeven.
The
S&P 500 Index
(SPX - 1,415.51)
and
Nasdaq Composite (COMP - 3,062.39)
also advanced in today's action. While the SPX turned in a roughly
10-point, or 0.7%, uptick, the tech-rich COMP rocketed 31.5 points,
or 1%. This was the highest daily close for the SPX since April 2,
and the COMP's best daily perch since April 27.
The
CBOE Market Volatility Index (VIX - 14.29)
pulled back 2.3% today, finding a foothold just above its intraday
low of 14.28. This makes five consecutive sessions underneath the
15 mark for the VIX.
Today's highlight
: "Housing stocks kicked some butt today, even though there was
some disappointing housing data this morning," remarked Detrick.
"We've been bullish on this group all year, and to see it shake off
bad news is a very upbeat sign for the group -- maybe even the
entire market as a whole."
Ryan continued: "Also, I love to see small caps lead. They've
lagged most of the summer, but since August started they've taken
the driver's seat. This is just one more sign that this rally could
still have some legs."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Crude futures saw their third consecutive up day, as the dollar
drifted lower and speculators mulled supply worries from the North
Sea and heightened tensions in the Middle East. Even as the White
House said it could soon revisit plans to release strategic oil
reserves, oil for September delivery jumped $1.27, or 1.4%, to land
at $95.60 a barrel. This marked the commodity's highest daily
settlement since May 11.
Gold futures made it two wins in a row today, as comments from
China's premier buoyed hopes for stimulus for the world's
second-largest economy. Gains were limited, however, following a
report from the World Gold Council that showed global demand for
the precious metal dropped a year-over-year 7% in the second
quarter. By the close, December-dated gold rose $12.60, or 0.8%, to
settle at $1,619.20 an ounce.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 13,250.11)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,415.51)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 3,062.39)
- support at 2,400; resistance at 3,400
Click through to read coverage of today's
notable annual highs and lows
.
At the end of every market day, the staff at Schaeffer's
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