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Dow, SPX Show Resilience, But Can't Quite Mend JPMorgan Mess

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"The JPMorgan ( JPM ) news really came out of nowhere, and simply added to the overall uncertainty that is already out there," stated Schaeffer's Senior Technical Strategist Ryan Detrick. "At the same time, the S&P 500 Index ( SPX ) made its lows for the session right at the open, and it finished off those levels. So, that was some decent news, given how bad the JPM mess appeared." The Dow Jones Industrial Average (DJI) endured the same kind of fate today, finishing above its session low.

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

  • Despite the JPM-inspired weakness in multi-national banks, regional lenders fared quite well .
  • Is the recent drop in bullish sentiment a good thing for the market?
  • Plus, our very own Bernie Schaeffer weighed in on the hidden risks of under-committing .

And now, a look at the numbers...

The Dow Jones Industrial Average (DJI - 12,820.60) spent time on both sides of breakeven today, but ultimately ended down 34.4 points, or 0.3%. Eighteen of its 30 components closed lower, as JPMorgan ( JPM ) paced the laggards with a 9.3% drop. Verizon ( VZ ) led the 12 winning issues with an analyst-induced jump of 1.5%. The blue-chip barometer suffered a 1.7% deficit for the week.

The S&P 500 Index (SPX - 1,353.39) peeled back 4.6 points, or 0.3%, by the closing bell. But the Nasdaq Composite (COMP - 2,933.82) fared the best of its fellow benchmarks, and inched fractionally higher. Over the past five days, the SPX fell 1.1%, while the COMP turned in a 0.8% decline.

The CBOE Market Volatility Index (VIX - 19.89) stayed below the 20 mark today, but closed up 5.6%, to land just under its session high of 19.94. The market's fear gauge ticked up 3.8% for the week.

Today's highlight : "When you consider all that hit the market this week -- from continued euro-zone issues to the Cisco ( CSCO ) and JPM bombs -- we were rather impressed by the overall resilience," said Detrick. "Sure, the SPX was down about 1% on the week, but it just hammered home to us how very low the overall expectations are with the market at this juncture."

Detrick continued, "As Bernie Schaeffer mentioned in an internal email earlier today, if the market has held up this well amid all of the drama at home and abroad this week, 'not too much fantasy is needed to conclude it could soar if the overseas situation stabilizes.'"

Turning to today's major market stories...

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

After scoring its only win of the week in Thursday's session, oil futures slouched today to their lowest close of the year. Weak industrial growth data out of China added to ongoing demand concerns, which weighed on the commodity. Crude for June delivery dipped 95 cents, or 1%, to land at $96.13 a barrel. Oil gave up 2.4% for the week.

Gold futures were pressured lower today on the heels of remarkably tame inflation data, with wholesale prices rising at the slowest pace in two years. June-dated gold sawed off $11.50, or 0.7%, to close at $1,584 an ounce -- its lowest settlement of 2012. For the week, the precious metal lost 3.7%.

Levels to Watch in Trading :

  • Dow Jones Industrial Average (DJI - 12,820.60) - support at 11,500; resistance at 14,000
  • S&P 500 Index (SPX - 1,353.39) - support at 1,100; resistance at 1,500
  • Nasdaq Composite (COMP - 2,933.82) - support at 2,400; resistance at 3,400

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

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 Nasdaq, Inc.

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

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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