Dow Forgets Early-Session Gain and Drops 143 Points

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"Early price action was positive after news over the weekend that Spain was given up to $125 billion in credit to assist their banking system," said Schaeffer's Senior Equity Analyst Joe Bell. "After the initial pop at the open, we quickly experienced a reversal that pushed almost all sectors into the red." Indeed, it didn't take long for the skeptical mood to take hold, knocking the Dow Jones Industrial Average (DJI) down by nearly 156 points at its late-session low.

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

  • Did Wall Street "buy the rumor, sell the news" on Spain?
  • We're watching two significant technical levels on the S&P 500 Index ( SPX ).
  • Plus, now you can analyze charts with Bernie Schaeffer and the Schaeffer's trading team.
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 12,411.23) began the day in the black, reaching the 12,650.47 level right out of the gate. But the positivity didn't last too long as the Dow lopped off nearly 143 points, or 1.1%, to land just atop its session low of 12,398.48. All but four of the 30 components suffered defeats, as Bank of America ( BAC ) paced the 26 laggards with a 3.7% decline. Verizon ( VZ ) led the winning minority with a 0.3% rise.

The S&P 500 Index (SPX - 1,308.93) pulled back 16.7 points, or 1.3%, while the Nasdaq Composite (COMP - 2,809.73) notched the largest loss of its fellow benchmarks, falling 48.7 points, or 1.7%.

The CBOE Market Volatility Index (VIX - 23.56) turned in its first daily gain in a week today, jumping roughly 11%, and ending at its session peak.

Today's highlight : "There wasn't much to cheer about today, as it seems we experienced a 'buy the rumor, sell the news' situation with Spain," reflected Bell. "The SPX once again struggled with the 1,333 area that we talked about earlier today , as the potential 'good news' this morning did little to calm this market volatility. With Spain's rescue out of the way, many investors will now be eyeing Italy's economy and the upcoming Greek elections this Sunday.

Turning to today's major market stories...

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

Oil futures dipped lower for a third straight session today, as positive momentum stemming from the bank bailout in Spain slowly eroded. Plus, reports that the U.S. will exempt India, South Korea, and several other countries from the Iranian oil embargo only made things worse for the commodity. By the close, July-dated crude dropped $1.40, or 1.7%, to land at $82.70 a barrel -- it lowest settlement in eight months.

Conversely, gold futures closed with a second consecutive win, buoyed by the European Union's rescue of Spanish banks. Gold for August delivery added $5.40, or 0.3%, to settle at $1,596.80 an ounce.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 12,411.23) - support at 11,500; resistance at 14,000

  • S&P 500 Index (SPX - 1,308.93) - support at 1,100; resistance at 1,500

  • Nasdaq Composite (COMP - 2,809.73) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

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.

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This article appears in: Investing , Options

Referenced Stocks: BAC , BRCM , MRVL , SPX , VZ

Schaeffer's Investment Research

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