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In Sleepy Session, Stocks See Either Side of Breakeven
10/2/2012 4:40:00 PM
By: Schaeffer's Investment Research
Dow Jones Industrial Average (DJI)
was off more than 90 points at its intraday bottom, in an
up-and-down session on the Street. "It was an incredibly quiet day
on the news front," noted Schaeffer's Senior Technical Strategist
Ryan Detrick. "That's not always bad, but it does give us a better
feel for what Mr. Market wants to do. Given we had some sellers
once again, you have to be somewhat concerned that the bears might
finally be ready to play."
Just before noon, the Dow Jones Industrial Average (DJI - 13,482.36) tripped to an session low of 13,424.92, but pared most of this deficit by the time the dust settled. Ultimately, the Dow sawed off 32.8 points, or 0.2%, staying below its 10-day moving average. Nineteen of the 30 blue chips finished with losses, as E I Du Pont De Nemours And Co's ( DD ) 1.7% drop paced the laggards. On the other hand, Chevron Corporation ( CVX ) led the 10 outperforming issues with a 0.6% upswing. Caterpillar Inc. ( CAT ) remained unchanged.
Both the S&P 500 Index (SPX - 1,445.75) and Nasdaq Composite (COMP - 3,120.04) eked out wins in last-minute trading. The SPX inched 1.3 points, or roughly one tenth of a percent, higher. Meanwhile, the COMP tacked on 6.5 points, or 0.2%.
The CBOE Market Volatility Index (VIX - 15.71) dipped back below its 50-day moving average today, retreating 0.6 points, or 3.7%.
Today's highlight : "JPMorgan Chase & Co. (JPM) was sued by the New York Attorney General over mortgage bonds related to Bear Stearns," remarked Detrick. "Nevertheless, the shares were virtually flat on the day. Only in America!"
Though long-term bullish, Ryan has spotted several reasons to be cautious of the recent drift lower for equities. Click here for more .
Turning to today's major market stories...
For today's activity in commodities, options, and more, head to page 2.
After three consecutive up days, crude futures took a swift dive in late trading, as investors are anticipating tomorrow's supply data and Friday's payroll report. By the close, November-dated crude slid 59 cents, or 0.6%, lower to land at $91.89 a barrel.
Gold futures also took a hit today, as speculators took their profits from yesterday's multi-month peak . Gold for December delivery declined $7.70, or 0.4%, to settle at $1,775.60 an ounce.
Levels to watch in trading...
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.