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Early Blast Derailed as Dow, SPX Finish With a Whimper

By Schaeffer's Investment Research June 04, 2012, 04:35:30 PM EDT

"Last Friday, the S&P 500 ( SPX ) broke below its 200-day moving average for the first time since December. After the sharp sell-off on the Street, many were hoping for a nice rally, as futures showed strength in pre-market trading," said Schaeffer's Senior Equity Analyst Joe Bell. "The celebration didn't last long, though, as the market once again failed to maintain early gains, and most sectors finished with losses." The Dow Jones Industrial Average (DJI) fared no better, and endured a near 109-point swing that ultimately led to a negative return.

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

  • Can the tech sector rescue the broader market from a deeper decline?
  • Plus, check out the most recent commentary from Bernie Schaeffer's Option Advisor .
And now, a look at the numbers...

CLOSING SUMMARY -INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

The Dow Jones Industrial Average (DJI - 12,101.46) touched a session peak of 12,143.69 right out of the gate, and tumbled as low as 12,035.09 in mid-morning trading. But in the end, the Dow turned in a deficit of 17.1 points, or 0.1%, ending a second straight session below its 200-day moving average. Half of the 30 blue chips crossed the finish line with wins, as Home Depot ( HD ) led the outperformers with a 1.7% jump. JPMorgan Chase ( JPM ) paced the 15 losing components with a 2.9% decline.

The S&P 500 Index (SPX - 1,278.18) was able to keep its head above the breakeven mark today, and eked out a fractional gain by the closing bell. The SPX also notched its second consecutive settlement below its 200-day trendline. Meanwhile, the Nasdaq Composite (COMP - 2,760.01) closed with a 12.5-point, or 0.5%, gain, enough to edge back atop its 200-day moving average.

The CBOE Market Volatility Index (VIX - 26.12) moved south by 2% today, closing above its session low of 25.72. The VIX was able to maintain its perch atop the 26 level.

Today's highlight

Turning to today's major market stories...

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

Oil futures closed higher for the first day out of the last five, as bargain-hunting investors scooped up the commodity after it fell to an eight-month low last week. Crude for July delivery added 75 cents, or 0.9%, to finish at $83.98 a barrel.

After last week's profit taking, gold futures couldn't capitalize on a faltering dollar and lackluster economic data from home and abroad . August-dated gold slipped $8.20, or 0.5%, to land at $1,613.90 an ounce.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 12,101.46) - support at 11,500; resistance at 14,000

  • S&P 500 Index (SPX - 1,278.18) - support at 1,100; resistance at 1,500

  • Nasdaq Composite (COMP - 2,760.01) - support at 2,400; resistance at 3,400

OUTPERFORMING AND UNDERPERFORMING SECTORS

STOCKS - MOVERS

STOCKS - EARNINGS

STOCKS - NOTABLE CALL ACTIVITY

STOCKS - NOTABLE PUT ACTIVITY

For today's notable annual highs and lows, click here .

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.


This article appears in: Investing, Options

Referenced Stocks: GRPN, HD, JPM, QQQ, SPX



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