Dow Takes 13,100, as Bulls Extend Their Stay

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"Following a huge up day on Friday , we didn't give up any of the gains. In fact, we added to them," noted Schaeffer's Senior Technical Strategist Ryan Detrick. "Given how choppy and frustrating things have been, you have to be impressed with this type of action." Indeed, the Dow Jones Industrial Average (DJI) leapt higher out of the gate, notching a second consecutive close atop 13,000.

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

And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

At its intraday peak of 13,187.28, the Dow Jones Industrial Average (DJI - 13,117.51) was up more than 91 points, but gave up a large chunk of this rally in the last half-hour of trading. By the time the dust settled, the blue-chip barometer secured its first daily settlement above 13,100 since May 3, notching a 21.3-point, or 0.2%, gain. Bank of America Corp ( BAC ) paced the 19 winning issues with a 2.8% rise, while American Express Company ( AXP ) led the 11 underperformers with a 0.9% drop.

The S&P 500 Index (SPX - 1,394.23) and Nasdaq Composite (COMP - 2,989.91) traveled similar paths, giving up some of their early gains but finishing at their best prices in more than three months. While the SPX increased by 3.2 points, or 0.2%, the COMP enjoyed a 22-point, or 0.7%, bounce -- the best performance of its fellow benchmarks.

The CBOE Market Volatility Index (VIX - 15.95) pushed nearly 2% higher today, yet landed below its session high of 16.27. This marked the VIX's second straight close below 16.

Today's highlight : "Although Best Buy Co., Inc. ( BBY ) is a store that no one seems to shop at anymore, I think the bid to take this retailer private could have very bullish repercussions," remarked Detrick. "This comes on the heels of The Shaw Group Inc. ( SHAW ) being bought at a huge premium last week. The more deals we see like this, the more it confirms that companies have cash and think there are some nice deals out there."

Turning to today's major market stories...

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

Oil futures added to last week's gains today, finishing a second straight session higher on hopes that the European Central Bank will offer more relief to the debt-strapped euro zone. While the dollar took a slide, September-dated oil rose 80 cents, or 0.9%, to close at $92.20 a barrel -- its loftiest price since July 19.

prolonged Friday's rally

Levels to watch in trading...

  • Dow Jones Industrial Average (DJI - 13,117.66) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,394.24) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,989.91) - 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: AXP , BAC , BBY , CIEN , SHAW

Schaeffer's Investment Research

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