The Dow Jones Industrial Average ($DJI) had a gain of 93.24 points, or 0.81%, and closed at 11,670.75 on Monday. The mortgage-related financials were the top performers in the index. Bank of America (BAC) rose 6.37%, while JP Morgan Chase (JPM) closed higher by 2.73%. They were followed by strong gains in Alcoa (AA) (+2.66%) and Exxon Mobil (XOM) (+1.96%). Four of the Dow's thirty index components posted a loss. The top two were Intel (INTC) (-0.86%) and Coca-Cola (KO) (-0.84%).
The S&P 500 ($SPX) rose 14.25 points or 1.13%, and closed at 1,271.89. The top percentage performers in the index on Monday were Sprint Nextel (S) (+6.62%), Bank of America (BAC) (+6.37%), Lincoln National (LNC) (+5.29%), and Consol Energy (CNX) (+4.99%). The weakest were Tyson Foods (TSN) (-4.65%), Clorox Co. (CLX) (-2.70%), and Constellation Brands (STZ) (-2.44%).
The Nasdaq Composite ($COMPX) ended the session higher by 38.65 points, or 1.46%, on Monday and it closed at 2,691.52. The top percentage gainers in the Nasdaq-100 were Wynn Resorts (WYNN) (+4.96%), Netapp (NTAP) (+4.46%), Intuitive Surgical (ISRG) (+4.36%), and Express Scripts (ESRX) (+4.16%). The weakest in the Nasdaq-100 were Lam Research (LRCX) (-3.57%), NII Holdings (NIHD) (-2.64%), and Expedia (EXPE) (-1.20%).
We are unlikely to see a repeat of Monday's rally as we head into Tuesday. The current price action is favoring a trading range on the 30-minute, all-sessions time frame. This time frame includes pre and post-market trade in the futures markets. It should be a decent session for day trading strategies based upon the five-minute time frames.
Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.