S&P 500 Index: +2.00 or 0.17% at 1146.98
NASDAQ Composite Index: -4.76 or 0.21% at 2312.41
CBOE Volatility Index: -0.58 or 3.20% at 17.55
NYSE Internals: 1811 Advance. 1226 Decline.
Markets rise on earnings expectations.
The SPX tested resistance at 1150 today. As I said on Friday, this area should probably hold the first time we test it. We opened right around it, and quickly reversed down. Most of the day, the SPX was in a small range, but broke out late in the day, closing just 2 cents shy of 1147.
We had a nice little throw-over the upper line of the ending diagonal today. But we quickly regained it and closed inside the wedge. But as you can see from this chart, we are running out of room. A break of today's lows, 1142, will be bearish short term.
The Dow daily chart also has the same little "throw-over" The key pivot is today's low.
I posted an Apple chart last week, saying that we had a potential H&S pattern. It seems to be playing out very well, for now. We had a slight break of the neckline, but we failed to hold below it. Maybe we will break it on the next test. If we do break it with some conviction, I believe we could go down to the target around 202.30.
So for now, the outlooks on the markets is caution. We are at a key level of resistance right now, and it would only be healthy for the market to correct a little if it wants to continue higher. If we get around to breaking key support levels, then it will be time to re-evaluate the counts. But for now, the bulls are still in control.
The US Dollar was down, and so was Crude Oil. Gold rallied today, and Tech was the weakest. The VIX also made a new 52-week low again.
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