"It was a rather slow news day, as we wait for the German
Constitutional Court ruling on the European Central Bank (ECB)
bailout, scheduled for tomorrow," said Schaeffer's Senior Technical
Strategist Ryan Detrick. "To me, the action in small caps was
worthwhile. The iShares Russell 2000 Index (ETF) (NYSEARCA:IWM)
went right up to its March peak and found resistance. Given that
small caps have been leading since early August, this technical
level won't go down without a fight." The
Dow Jones Industrial Average (DJI)
fared just as well, touching a more than four-year best in
late-morning action.
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
The
Dow Jones Industrial Average (DJI - 13,323.36)
was up more than 100 points at its intraday peak of 13,354.34, but
pared some of its lead by the time the dust cleared. On the day,
the blue-chip barometer rallied 69.1 points, or 0.5%, to close at
its loftiest point since December 2007. All but six of the Dow's 30
components posted victories today, as Bank of America Corp (
BAC
) lead the outperforming majority with a 5.2% gain. On the other
hand, Kraft Foods Inc (
KFT
) and The Home Depot, Inc. (
HD
) lead the losing issues with deficits of 1.1% and 1%,
respectively.
The
S&P 500 Index
(SPX - 1,433.56)
and
Nasdaq Composite (COMP - 3,104.53)
followed the Dow into positive territory today. The SPX increased
4.5 points, or 0.3%, to find a perch back atop the 1,430 mark.
Meanwhile, the COMP held onto a narrow victory in the last minutes
of trading, and tallied a 0.5-point win, notching a fourth straight
close above 3,100.
The
CBOE Market Volatility Index (VIX - 16.41)
eked out its second up day, adding roughly 0.1 point, or 0.8%.
Today's highlight
: "We gained back some of Monday's sell-off, so that was nice,"
said Ryan. "But with various big, market-moving events coming the
next two days, today was just an appetizer."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Oil futures ran to another victory today, thansk to stimulus
hopes ahead of this week's Federal Open Market Committee (FOMC)
meeting. The commodity also found support from a flailing dollar,
which tipped lower on the heels of Moody's warning that the U.S.
debt rating could be downgraded next year. October-dated crude rose
63 cents, or 0.7%, to end at $97.17 a barrel.
Optimism for an FOMC-induced stimulus package also lifted gold
futures today. To boot, the dollar-denominated commodity also
maintained its lead as the greenback took a hit. By the close, gold
for December delivery tacked on $3.10, or 0.2%, to settle at
$1,734.90 an ounce.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 13,323.36)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,433.56)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 3,104.53)
- support at 2,400; resistance at 3,400
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
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