Equity indexes push higher on M&A activity

S&P 500

Although the Nasdaq led the upside throughout the morning, this also left it more extended into Monday afternoon. As a result, it also gave way to the afternoon reversal more readily than the S&P 500 and Dow. The Nasdaq formed a 2T on the 5 minute time frame just before the 13:00 ET correction period, but the selloff became stronger following a 5 minute AvalancheTM around 14:30 ET. The index futures did recovered once again into the early-morning on Tuesday, but resistance held at 5:30 a.m. ET when the S&P and Dow retested Monday's highs. The weaker Nasdaq fell short of the prior highs, but also hit resistance at the same time at the 62% Fibonacci retracement. The indices remain in corrective mode heading into Tuesday's opening bell, but the bulls are still maintaining the upper hand.

Nasdaq Composite

The Dow Jones Industrial Average ($DJI) had a gain of 69.48 points, or 0.57%, and closed at 12,161.63 on Monday. Approximately two-thirds of the Dow's thirty index components posted a gain. The financials were the top leaders. Bank of America (BAC) ended the session higher by 2.66%. American Express (AXP) followed with a gain of 2.28%, while JP Morgan Chase (JPM) climbed 2.04%. The weakest were Pfizer (PFE) (-1.35%) and Kraft Foods (KFT) (-1.03%).

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