S&P 500 (Figure 2)
My outlook into Tuesday remains unchanged from this weekend. The market continued to favor corrective action off last week's lows, but it will be very difficult for the market to surpass the prior highs without stalling. This leaves the odds in favor of a longer daily trading range as the week progresses.
Nasdaq Composite (Figure 3)
The Dow Jones Industrial Average ($DJI) had a gain of 95.89 points, or 0.79%, and closed at 12,226.34 on Monday. Twenty-five of the Dow's thirty index components posted a gain for the session. The leaders were Johnson & Johnson (JNJ) (+3.02%), Verizon (VZ) (+2.64%), Hewlett-Packard (HPQ) (+2.23%), and 3M (MMM) (+2.19%). Intel (INTC) was the biggest loser (-1.78%).
The S&P 500 ($SPX) rose 7.34 points, or 0.56%, and closed at 1,327.22. Interpublic Group (IPG) (+5.01%), Dell (DELL) (+4.63%), Noble Energy (NBL) (+3.89%) and Humana Inc. (HUM) (+3.85%) were the strongest percentage performers in the S&P 500. the weakest were MEMC Electr. Materials (WFR) (-6.22%), First Solar (FSLR) (-5.35%), Akamai Tech. (AKAM) (-4.94%), and Salesforce.com (CRM) (-4.73%).
The Nasdaq Composite ($COMPX) ended the session higher by 1.22 points, or 0.04%, on Monday and it closed at 2,782.27. Dell (DELL) (+4.63%), Vertex Pharmaceuticals (VRTX) (+4.08%), Joy Global (JOYG) (+3.67%), and Urban Outfitters (URBN) (+2.37%) were the leaders in the Nasdaq-100. The laggards included First Solar (FSLR) (-5.35%), Akamai Tech. (AKAM) (-4.94%), and Liberty Media Corp. (LINTA).
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.