The stronger Dow has a way to go before it hits that same level, but a breakdown in the Dow will leave the S&P 500 and Nasdaq-100 aiming for their 100-day moving averages as discussed in yesterday's column. This week still has a lot of potential for whip-saw action though due to the lack of a strong second high within the 60-minute trading range, so treat swingtrades with greater caution.
Nasdaq Composite (Figure 3)
The Dow Jones Industrial Average ($DJI) ended the day with a loss of 47.38 points, or 0.38%, and closed at 12,548.37 on Monday. Nine of the Dow's thirty index components posted a gain. The top performers were American Express (AXP) (+1.17%), Intel (INTC) (+0.98%), Travelers (TRV) (+0.98%), and WalMart (WMT) (+0.61%). The weakest performers were Microsoft (MSFT) (-1.84%), Cisco Systems (CSCO) (-1.66%), Boeing (BA) (-1.59%), and Hewlett-Packard (HPQ) (-1.51%).
The S&P 500 ($SPX) fell 8.30 points, or 0.62%, and closed at 1,329.47. The top percentage performers in the index on Monday were FirstEnergy (FE) (+4.59%), Discover Financial Services (DFS) (+3.42%), IntercontinentalExchange (ICE) (+3.30%), and SanDisk (SNDK) (+3.14%). NYSE Euronext (NYX) was the weakest performer, falling 12.62% after the NASDAQ OMX Group (NDAQ) and IntercontinentalExchange (ICE) announced that they are withdrawing their bid to aquire NYSE Euronext. Other top percentage decliners included Monster Worldwide (MWW) (-8.26%), Amazon.com (AMZN) (-4.96%), and Yahoo (YHOO) (-4.47%).
The Nasdaq Composite ($COMPX) ended the session lower by 46.16 points, or -1.63%, on Monday and it closed at 2,782.31. Only eight stocks in the Nasdaq-100 ended the session in the black. The top performers were SanDisk (SNDK) (+3.14%), Micron Technology (MU) (+1.44%), Dentsply Intl. Inc. (XRAY) (+1.24%), and Joy Global (JOYG) (+1.01%). The weakest stocks in the Nasdaq-100 were Amazon.com (AMZN) (-4.96%), Yahoo (YHOO) (-4.47%), Wynn Resorts (WYNN) (-3.92%), and Netflix (NFLX) (-3.83%).
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.