After an up-and-down session, the
Dow Jones Industrial Average (DJI)
crossed the finish line with a slim victory, but parked below its
200-day trendline for a third consecutive day. "House Republican
Leader John Boehner and President Obama took to the airwaves today
in separate speeches about the 'fiscal cliff,'" said Schaeffer's
Senior Equity Analyst Joe Bell. "It is clear both sides are divided
and trying to sell their ideas to the public. Unfortunately, the
public won't decide this issue and they need to start talking to
each other. The uncertainty surrounding the 'fiscal cliff' is
giving most investors pause right now. We had a see-saw battle
throughout the day, and in the end, neither bulls nor bears really
Chart of the Day
: Schaeffer's Senior Options Strategist Tony Venosa, CMT, offers
nine reasons to
go long on Eastman Chemical (
Daily Game Plan
: With bears in control, Schaeffer's Senior Trading Analyst Bryan
holding off before joining in the selling
And now, a look at the numbers...
Selling momentum abated on Friday, as stocks hovered above the
breakeven mark for the majority of the day. The Dow Jones
Industrial Average (DJIA) closed with a gain of mere points, but
the damage was done for the week. The blue-chip index settled south
of its 40-week moving average for the first time since June 1 and
shed more than 2.1% over the course of the rocky five sessions.
Elsewhere, the S&P 500 Index (SPX) spent the day flirting
with its 200-day moving average, which was breached on Thursday for
the first time in five months. The index closed up 0.2% to end the
day just below this trendline, and lost 2.4% for the week. The
Nasdaq Composite (COMP) was the day's outperformer, gaining 0.3% by
the session's close. The tech-heavy index brought up the rear for
the week, however, retreating 2.6%.
The CBOE Market Volatility Index (VIX) moved modestly higher
amid continued trepidation among investors. While staying south of
the $19 level, the VIX added close to 0.7% on the day and finished
the week 5.8% higher.
: "The best thing about today's market is that it didn't go down,"
noted Bell. "After the strong sell off during the past two days,
most investors welcomed the flat day as a nice break from sharp
declines. Whenever a market is surging lower like it has been,
traders are simply looking for the momentum to slow down a bit and
today was a nice first step."
More of today's big stories
And, in case you missed it
... Senior VP of Research Todd Salamone highlights
short-term buying opportunities for Apple (
For today's activity in commodities, options, and more, head
to page 2.
Crude futures settled higher on Friday, tracking gains in
gasoline futures on reports of a supply shortage in the post-Sandy
Northeast. Well-received economic data also provided support for
black gold, with traders pricing in some cautious optimism for
stronger energy demand. Crude oil for December delivery added 98
cents, or 1.2%, to finish at $86.07 per barrel. For the week, oil
Gold futures ended on a positive note, collecting their fifth
straight daily win. The precious metal caught a bit of a safe-haven
bid as U.S. leaders from both sides of the aisle drew some
fiscal-cliff lines in the sand, but buyers were also drawn in by
data showing stronger physical demand from India. December-dated
gold tacked on $4.90, or 0.3%, to settle at $1,730.90 per ounce,
having surged 3.3% over the course of the week.
Levels to watch in trading...
Dow Jones Industrial Average (DJI - 12,815.39)
- support at 11,500; resistance at 14,000
S&P 500 Index (SPX - 1,379.85)
- support at 1,100; resistance at 1,500
Nasdaq Composite (COMP - 2,904.87)
- support at 2,400; resistance at 3,400
At the end of every market day, the staff at Schaeffer's
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