S&P 500 (Figure 2)
The Dow Jones Industrial Average ($DJI) ended the day with a gain of 152.92 points, or 1.25%, and closed at 12,414.34 on Thursday. Twenty-six of the Dow's thirty index components posted a gain. The top performers were Intel (INTC) (+3.60%), Caterpillar (CAT) (+3.00%), Hewlett-Packard (HPQ) (+2.39%), and United Technologies (UTX) (+2.36%). The weakest performers were Bank of America (BAC) (-1.62%), Pfizer (PFE) (-0.34%), Travelers (TRV) (-0.32%), and McDonalds (MCD) (-0.30%). The Dow managed to post a quarterly gain of 0.8%.
The S&P 500 ($SPX) gain of 13.23 points, or 1.01%, and closed at 1,320.64. The strongest percentage performers in the index were Joy Global (JOYG) (+5.69%), Netapp (NTAP) (+5.64%), eBay (EBAY) (+4.57%), and Broadcom (BRCM) (+4.05%). The weakest were CF Inds. Holdings (CF) (-5.14%), McCormick & Co. (MKC) (-2.80%), Mastercard (MA) (-2.70%), and Visa (V) (-2.67%).
Nasdaq Composite (Figure 3)
The Nasdaq Composite ($COMPX) ended the session higher by 33.03 points, or 1.21%, on Thursday and it closed at 2,773.52. The strongest performers in the Nasdaq-100 were Joy Global (JOYG) (+5.69%), Netapp (NTAP) (+5.64%), eBay (EBAY) (+4.57%), and Broadcom (BRCM) (+4.05%). The weakest were Virgin Media (VMED) (-4.04%), Biogen Idec (BIIB) (-1.89%), and Netflix (NFLX) (-0.85%).
With the crucial Greek votes behind us and a three-day weekend looming ahead, a lot of the focus in Friday's session is likely to be upon profit-taking. Four-day rallies of the magnitude we've seen so far this week are quite rare and it's unlikely that many short-term traders will be willing to risk seeing their gains erode over the holiday. This should create the slowdown we've been expecting heading into the weekend and will make for a choppier session on Friday with more of the back and forth intraday action we're used to on the 5 minute time frame as opposed to the stronger trend moves that have been followed by narrow ranges with little daytrading opportunity.
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.