The market found support early on in Monday's session, making only slightly lower lows out of the opening bell. These lows established a stronger test of the 20-day moving averages in the Dow and S&P and brought the Nasdaq-100 into support of its own at its 10-day moving average. This was the second time this year that the Nasdaq has struck that support level. As the strongest of the three major indices, it had the easiest time recovering the weekend losses and closed its gap zone by noon.
A minor pullback mid-day created a continuation pattern that was followed by further buying into Monday afternoon. This took the Nasdaq back to Friday's highs and brought the Dow and S&P 500 to its 5 minute and 15 minute 200 period moving averages. They held this resistance level into the close, but remained bullish afterhours and made up more of its losses prior to Tuesday's opening bell. The "V" reversal that took place off Monday's lows in the indices keeps the daily uptrend in play, but it will make last week's highs a strong resistance level for both the Dow and S&P 500.
S&P 500 (Figure 2)
The Dow Jones Industrial Average ($DJI) ended the day on Monday with a loss of 6.74 points, or 0.05%, and closed at 12,653.72. Twelve of the Dow's thirty index components posted a gain. The top performers were Microsoft (MSFT) (+1.30%), Verizon (VZ) (+1.07%), and IBM (IBM) (+1.07%). The top percentage losers were Bank of America (BAC) (-3.02%), Procter & Gamble (PG) (-1.70%), and American Express (AXP) (-1.46%).
The S&P 500 ($SPX) finished the session with a loss of 3.32 points, or 0.25%, and closed at 1,313.01. Out of the index's ten industry groups, only telecoms (+0.6%) and technology (+0.3%) posted gains. The weakest sector was the financials (-1.0%). The top individual percentage performers in the index were Nabors Industries (NBR) (+3.51%), Interpublic Group (IPG) (+2.45%), and Monsanto Co. (MON) (+2.19%). The top decliners were Gannett Inc. (GCI) (-6.90%), Staples Inc. (SPLS) (-4.87%), and CBRE Group (CBG) (-4.25%).