SPX Breaks Winning Streak; Fed Does Little to Inspire the Bulls

By
A A A

The Dow Jones Industrial Average (DJI) took off on a wild ride today, swinging more than 132 points before all was said and done. As Federal Reserve Chairman Ben Bernanke stepped up to the mic following the central banker's two-day summit, Wall Street was on pins and needles. "After the usual Fed-induced volatility, the lack of talk about another round of quantitative easing by Bernanke pushed markets lower late in the day," explained Schaeffer's Senior Technical Strategist Ryan Detrick. "Nonetheless, after four straight up days, I guess some type of selling was due."

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

  • Measuring near-term volatility in small caps with the RVX.
  • Commodities make the global markets go round .
  • See what technical hurdles Bernie Schaeffer thinks could stand in JPMorgan Chase's ( JPM ) path.
And now, a look at the numbers...

CLOSING SUMMARY - INDICES

CLOSING SUMMARY - NYSE AND NASDAQ

Just after lunchtime today, the Dow Jones Industrial Average (DJI - 12,824.39) climbed from a session low of 12,744.92 all the way to its session peak of 12,877.18. But the Dow couldn't maintain this upward momentum, and tripped 12.9 points, or 0.1%, lower by the closing bell. Sixteen of the 30 components finished in positive territory, as JPMorgan Chase ( JPM ) paced the winning majority with a 3% rise. Procter & Gamble ( PG ) , meanwhile, led the 14 laggards with a 2.9% decline.

The S&P 500 Index (SPX - 1,355.69) marked its first down day out of the last five, dipping 2.3 points, or 0.2%. On the other hand, the Nasdaq Composite (COMP - 2,930.45) recorded its fifth consecutive gain, tacking on 0.7 point, or 0.02%.

The CBOE Market Volatility Index (VIX - 17.24) backpedaled even further below the 20 level today, losing 6.2%, but ending north of its session low of 17.09.

Today's highlight : "Because there was so much speculation as to what would happen today, I'm glad to see that it's all finally over," claimed Detrick. "All in all, I don't think the Fed did much to rock the boat, and I believe the recent overall uptrend is very much alive."

Turning to today's major market stories...

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

Oil futures took a hit today, falling to a more than eight-month low. The commodity dropped following a surprise increase in crude stockpiles as well as the Fed's decision to prolong Operation Twist and maintain interest rates at their current levels. July-dated crude slipped $2.23, or 2.7%, to settle at $81.90 a barrel. Meanwhile, crude for August delivery -- the most actively traded contract -- burned off $2.90, or 3.4%, to close at $81.45.

Likewise, gold futures sputtered lower, thanks to the Fed's downwardly revised forecast for inflation. August-dated gold inched $7.40, or 0.5%, lower to land at $1,615.80 an ounce.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 12,824.39) - support at 11,500; resistance at 14,000

  • S&P 500 Index (SPX - 1,355.69) - support at 1,100; resistance at 1,500

  • Nasdaq Composite (COMP - 2,930.45) - 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.

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.


This article appears in: Investing , Options

Referenced Stocks: DG , GRPN , JPM , PG , WAG

Schaeffer's Investment Research

Schaeffer's Investment Research
  • See all for Schaeffer's Investment Research
  • View Print Version

More from Schaeffer's Investment Research:

Related Videos

WSJ’s House of the Week
WSJ’s House of the Week             

Stocks

Referenced

Most Active by Volume

58,707,995
  • $25.98 ▼ 1.81%
55,057,148
  • $15.52 ▲ 0.19%
48,580,535
  • $69.40 ▲ 1.43%
48,253,528
  • $28.33 ▲ 5.00%
37,923,248
  • $93.939 ▼ 0.52%
37,174,627
  • $44.835 ▲ 0.32%
32,656,684
  • $3.78 ▼ 1.31%
31,770,654
  • $34.06 ▲ 1.07%
As of 7/21/2014, 04:08 PM