Dow Jumps 92 Points; Can the SPX Take Out Former Resistance?

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The Dow Jones Industrial Average (DJI) extended Tuesday's rally, catching a welcome lift from upbeat domestic data, including more from the housing sector. "The market got a nice kick start when Lennar ( LEN ) reported better-than-expected earnings, and then pending home sales for May came in more than 10 times above consensus estimates," said Senior Equities Analyst Joe Bell. "Most sectors finished in the green, but the S&P 500 Index found itself within a volatile trading range, right near the 1,333 level -- which is double its March 2009 low and the site of previous resistance."

Click through to see what else was on our radar today:

  • Knock! Knock! Who's there? Are homebuilders the answer to solving Wall Street's recent weakness ?
  • Plus, get the latest on this summer's hottest sectors , and blazing broad-market technicals .
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 12,627.01) jumped 112 points to a session high of 12,646.87 in the last minutes of trading, and finally found a perch 92.3 points, or 0.7%, higher today. All but six of the Dow's 30 components finished with gains, as JPMorgan Case & Co.'s ( JPM ) 3% rise paced the winning issues. McDonald's Corporation (MCD) led the losing minority with a 0.9% dip.

The S&P 500 Index (SPX - 1,331.85) nearly doubled yesterday's increase, adding 11.9 points, or 0.9%, by the closing bell. Meanwhile, the Nasdaq Composite (COMP - 2,875.32) jumped 21.3 points, or 0.7%.

The CBOE Market Volatility Index (VIX - 19.45) slipped 1.4% today, finding its footing just atop its session low of 19.38.

Today's highlight : "The best thing about today's market had to be the incredible streak of good news for the homebuilders ," remarked Bell. "Besides LEN's strong earnings report, today marked the third day in a row of strong housing data."

"Tomorrow we're expected to get the greatly anticipated Supreme Court ruling on Obama's health care program, which could affect drug manufacturing stocks and health care companies greatly."

Turning to today's major market stories...

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

Oil futures made it two in a row today, benefitting from the Energy Information Administration's (EIA) report that oil stockpiles fell last week, as well as upbeat housing and durable goods data. Crude for August delivery added 85 cents, or 1.1%, to settle at $80.21 a barrel.

Following yesterday's sell-off, gold futures eked out a win today. The commodity got an early boost from word the European Central Bank (ECB) might reduce interest rates in the region. August-dated gold inched up $3.50, or 0.2%, to settle at $1,578.40 an ounce.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 12,627.01) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,331.85) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,875.32) - 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

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This article appears in: Investing , Options

Referenced Stocks: AKS , INTC , JPM , LEN , ZNGA

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