"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:
And now, a look at the numbers...
- Did Wall Street
"buy the rumor, sell the news"
- We're watching
two significant technical levels
on the S&P 500 Index (
- Plus, now you can
analyze charts with Bernie Schaeffer
and the Schaeffer's trading team.
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 (
) paced the 26 laggards with a 3.7% decline. Verizon (
) led the winning minority with a 0.3% rise.
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%.
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.
: "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
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
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
For today's notable annual highs and lows,
At the end of every market day, the staff at Schaeffer's
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