Dow Battles Back From 184-Point Dip; VIX Vaults to Four-Week High

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Although the Dow Jones Industrial Average (DJI) suffered another triple-digit swoon, the blue-chip barometer was able to repair most of its losses by the time the dust settled. "For the second day in a row, once the European market closed, we were able to bounce off the lows," said Schaeffer's Senior Technical Strategist Ryan Detrick. "It's almost like once Wall Street can forget the mess the Europeans have gotten themselves into, buyers step up."

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

  • The latest sentiment survey showed financial advisers bracing for a correction .
  • The VIX settled at its highest point since early April.
  • Can Apple ( AAPL ) and the tech sector guide the broader equities market to better days?
  • Plus, Detrick is optimistic on a standout sector .
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 12,835.06) was down roughly 184 points at its early low of 12,748.48, but fought back to close with a 97-point, or 0.8%, decline. This was the sixth consecutive losing day for the Dow, and its second straight settlement below 13,000. All but six of the 30 components finished with losses, as United Technologies ( UTX ) paced the underperformers with a 2.3% drop. Walt Disney's ( DIS ) earnings-induced upswing led the winning issues with a 1.6% gain.

The S&P 500 Index (SPX - 1,354.58) made it two down days in a row, falling 9.1 points, or 0.7%. Meanwhile, with a little help from Apple ( AAPL ) , the tech-rich Nasdaq Composite (COMP - 2,934.71) maintained its hold atop key support, and was able to bounce from its early low of 2,900.18. The COMP ended the day with a 11.6-point, or 0.4%, deficit.

Just over an hour into the session, the CBOE Market Volatility Index (VIX - 20.08) soared to its session high of 21.59. By the time the dust settled, the market's fear gauge was up 5.4%, and closed above 20 for the first time since April 10.

Today's highlight : "Housing was the one bright spot today," explained Detrick. "We here at Schaeffer's have liked housing for awhile, and I was bullish on the group yesterday on Fox Business . Housing is the ultimate consumer play, and to see many names from this group breaking out to new highs is a nice sign for the overall market."

Turning to today's major market stories...

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

Despite a higher-than-predicted uptick in domestic crude inventories, oil futures were able to pare most of their losses by the closing bell. Anxiety over the surge in crude supplies was partially offset by a steep decline in gasoline stockpiles. June-dated crude dropped 20 cents, or 0.2%, to land at $96.81 a barrel -- its sixth straight settlement in the red.

Gold futures slipped under the $1,600 mark today, and notched their lowest closing price since Dec. 30. The dollar-denominated commodity took a hit as political instability in the euro zone sparked a safe-haven bid for the greenback. Gold for June delivery edged lower by $10.30, or 0.6%, to settle at $1,594.20 an ounce.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 12,835.06) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,354.58) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,934.71) - 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.



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 , DIS , LEN , MCD , UTX

Schaeffer's Investment Research

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