"The headlines will tell you [the market's gains] had something
to do with Bernanke's speech, but don't buy it," remarked
Schaeffer's Senior Technical Strategist Ryan Detrick. "The reality
is that earnings were pretty good and hardly anybody is expecting
much out of stocks currently. That, coupled with the recent
uptrend, and we have the makings for a nice summer rally surprise."
Indeed, the
Dow Jones Industrial Average (DJI)
pushed above breakeven just before noon and climbed to its best
daily settlement since July 5.
Keep reading to see what else was on our radar today:
- Stay ahead of the game:
10 Rules to prosperous trading
.
- Is now a good time to
fade the recent rally in bonds
?
- Plus, new signs that the
number of stocks at new highs
bodes well for the overall market.
And now, a look at the numbers...
The
Dow Jones Industrial Average (DJI - 12,805.54)
endured a 184-point swing today, touching an session low of
12,645.10 before midday, and finding an intraday high of 12,829.23
in the last hour of trading. By the time the dust settled, the Dow
held onto most of its gains, and closed up 78.3 points, or 0.6%.
Twenty-six of the Dow's 30 components finished in positive
territory, as The Walt Disney Company (
DIS
) led the winning issues with a 3.1% jump. Home Depot, Inc. (
HD
) paced the losing blue chips with a decline of 1.4%.
The
S&P 500 Index (SPX - 1,363.67)
also moved higher today, solidifying a 10-point, or 0.7%, gain --
which was also the best performance of its fellow benchmarks.
Meanwhile, the
Nasdaq Composite (COMP - 2,910.04)
enjoyed a win as well, leaping 13 points, or 0.5%, by the
close.
The
CBOE Market Volatility Index (VIX - 16.48)
dipped 3.7% today, and settled just atop its session low of 16.09
-- its lowest point since May 1.
Today's highlight
: "Although the overall market was higher, some of the Chinese
internet names we are bearish on got clobbered," winked Detrick.
"Anytime you have that happen, it's a good day."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Oil futures notched a week's worth of wins today, snapping back
from the uncertainty surrounding Federal Reserve Chairman Ben
Bernanke's testimony to Congress. The commodity was also buoyed by
ongoing tensions between Iran and the West, as well as supply
disruptions in the North Sea. By the close, August-dated crude
tacked on 79 cents, or 0.9%, to arrive at $89.22 a barrel -- the
loftiest price for black gold since late May.
Gold futures staged a comeback from early losses following the
Central Banker's inconclusive comments about economic stimulus. But
the damage was done, and gold for August delivery dipped $2.10, or
0.1%, to settle at $1,589.50 an ounce.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 12,805.54)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,363.67)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 2,910.04)
- support at 2,400; resistance at 3,400
Click the links for coverage on today's
notable annual highs
and
notable annual lows
.
At the end of every market day, the staff at Schaeffer's
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