The
Dow Jones Industrial Average (DJI)
claimed another multi-year high today, as investors continued to
ride yesterday's Fed-inspired rally, albeit on a much more subdued
level. "Today is simply a continuation of the strength we saw
yesterday," said Schaeffer's Senior Technical Strategist Ryan
Detrick. "While everyone is trying to figure out what QE3 means to
the economy, stocks have spoken, and they like it. At the same
time, hedge funds have totally dropped the ball and missed most of
this rally. There's a good chance these Johnny-come-latelies could
be the fuel for the next surge higher."
Keep reading to see what else was on our radar today:
And now, a look at the numbers...
The
Dow Jones Industrial Average (DJI - 13,593.37)
rose to an intraday peak of 13,653.24 early in the session, before
gradually paring its gains throughout the afternoon. By day's end,
the blue-chip barometer was up 54 points, or 0.4%, finishing at yet
another multi-year high. The Dow's 19 advancers were led by
Caterpillar Inc. (
CAT
), which gained 2.8%, while AT&T Inc. (
T
) and Merck & Co., Inc. (
MRK
) led the 11 decliners with losses of 2.3% each. For the week, the
Dow added 2.2%.
The
S&P 500 Index (SPX - 1,465.77)
tagged a fresh high of 1,474.51 this morning, marking its highest
peak in almost five years. Although the SPX pulled back to finish
just 6 points, or 0.4%, higher, it still closed atop the 1,450
level for a second consecutive session -- and ended the week with
an advance of 1.9%. Meanwhile, the
Nasdaq Composite (COMP - 3,183.95)
notched another decade-plus high of 3,195.67 before trimming its
intraday advance to 28 points, or 0.9%, and closing a sixth
straight session above 3,100. The COMP wrapped up the week with a
climb of 1.5%.
The
CBOE Market Volatility Index (VIX - 14.51)
added 0.5 point, or 3.3%, regaining just enough ground to close
back atop the 14.50 level.
Today's highlight
: "I might sound like a broken record, but when the iShares Russell
2000 Index (ETF) (NYSEARCA:IWM) hits a new all-time peak -- and
various housing names are breaking out to multi-year highs -- that,
my friends, is bullish," commented Ryan. "Coupled with bonds taking
it on the chin again, we could be on the verge of a huge move out
of bonds and into stocks."
Turning to today's major market stories...
For today's activity in commodities, options, and more, head
to page 2.
Crude oil enjoyed a brief surge into triple-digit territory
today, as a weaker U.S. dollar and heightened Middle-Eastern
anxieties combined to create a strong bid for the commodity.
October-dated crude edged up 69 cents, or 0.7%, to finish at $99
per barrel, after earlier topping out at $100.42. For the week, oil
gained 2.7%.
Gold futures also finished higher, building on Thursday's
Fed-inspired rally. By the close, gold for December delivery was up
60 cents at $1,772.10 per ounce -- its highest daily finish in six
months. The precious metal rose 1.9% for the week.
Levels to watch in trading...
-
Dow Jones Industrial Average (DJI - 13,593.37)
- support at 11,500; resistance at 14,000
-
S&P 500 Index (SPX - 1,465.77)
- support at 1,100; resistance at 1,500
-
Nasdaq Composite (COMP - 3,183.95)
- support at 2,400; resistance at 3,400
At the end of every market day, the staff at Schaeffer's
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