Dow Shaves 49 Points as Bears Take Back the Street

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"It was a mixed-up kind of day, as retail sales data was weak, yet the manufacturing data was strong. Then we saw Citigroup Inc. ( C ) up strong on earnings, only to finish near its session lows," said Schaeffer's Senior Technical Strategist Ryan Detrick. "The next few days will tell us a lot about how earnings are panning out. So, it's tough to make much out of today's action." With that, the Dow Jones Industrial Average (DJI) seemed to forget all about Friday's rally and gave way to a seventh loss in eight sessions.

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

  • 5 reasons why you should bet on a second-half rally .
  • Find out who's in the driver's seat during July options expirations week .
  • Plus, Bernie Schaeffer checks out the euro's pullback to historically significant technical support .
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

Although the Dow Jones Industrial Average (DJI - 12,727.21) bounced from its session low of 12,690.05, the blue-chip barometer still settled in negative territory, turning in a 49.9-point, or 0.4%, deficit. All but seven of the Dow's 30 components suffered defeats, as JPMorgan Chase & Co.'s ( JPM ) 2.7% drop led the parade of laggards. Pfizer Inc.'s ( PFE ) 1.4% uptick led the bullish minority.

The S&P 500 Index (SPX - 1,353.64) couldn't escape the overall bearish mood on the Street today, and posted a 3.1-point, or 0.2%, decline. Meanwhile, the Nasdaq Composite (COMP - 2,896.94) suffered a similar fate, and lopped off 11.5 points, or 0.4%, by the close.

The CBOE Market Volatility Index (VIX - 17.11) charged 2.2% higher today, settling just below its intraday peak of 17.32.

Today's highlight : "I was informed that I am the top performer at the mid-year mark in a stock-picking contest that includes stock market gurus here in Cincinnati," smiled Detrick. "Now, this doesn't count until the end of the year, but my bullish calls on the housing and biotech sectors have fueled some nice returns so far."

Turning to today's major market stories...

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

Oil futures jumped for a fourth straight session today, as the dollar weakened on a report showing that U.S. retail sales dropped by more than predicted in June. By the close, crude for August delivery added $1.33, or 1.5%, to climb to $88.43 a barrel.

On the other hand, gold futures turned lower, despite poorly received retail data and a warning about China's state of the economy . Even though the greenback took a hit, August-dated gold slipped 40 cents, or 0.09%, to settle at $1,591.60 an ounce.

Many investors in the commodity space are also waiting to see what comes of Federal Reserve Chairman Ben Bernanke's visit to Congress over the next two days.

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 12,727.21) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,353.64) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,896.94) - 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

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: C , EBAY , JPM , PFE , SHLD

Schaeffer's Investment Research

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