SPX Breaks 1,400 As Bulls Challenge Technical Hurdles
“After the past two days’ price action , the S&P 500 Index (SPX) has once again made a new two-month high, and continued its strong trend off its June bottom,” remarked Schaeffer’s Senior Equities Analyst Joe Bell.
“We now will contend with the May 2012 high and the 2012 high in the 1,410-1,420 area. Perhaps we are a little overextended in the short-term, but the trend is definitely pointing up.” To boot, the Dow Jones Industrial Average (DJI) climbed to its highest price since May 3.
The Dow Jones Industrial Average (DJI – 13,168.60) pierced the 13,200 level for the first time since May 4 today, and at its session peak of 13,215.97, the blue chip barometer was up more than 97 points.
But the Dow gave up a little less than half of this gain, and tallied a 51.1-point, or 0.4%, return by the closing bell. Cisco Systems Inc. ( CSCO ) led the 21 outperforming components with a 2.7% increase, while Pfizer Inc. ( PFE ) paced the nine laggards with a 2.1% dip.
The S&P 500 Index (SPX – 1,401.35) turned in its best finish since May 2, finding a perch atop the 1,400 mark. By the time the dust settled, the SPX added 7.1 points, or 0.5%.
The Nasdaq Composite (COMP – 3,015.86) also jumped through a technical hurdle today, reclaiming the 3,000 level for the first time since May 3. The COMP enjoyed the best performance of its fellow indexes and ran higher by nearly 30 points, or 0.9%.
The CBOE Market Volatility Index (VIX – 15.99) made its way to the 16 mark today, turning in 0.3% rise and a session best of 16.03. Despite this push, the VIX notched its third consecutive close below 16.
“There really weren’t a whole lot of ‘drivers’ or major headlines moving the market today,” noted Bell. “Instead, market participants saw a continuation of the steady upward momentum we have been experiencing recently.”
Crude futures made it three wins in a row today, as the dollar continued to battle recent weakness. The commodity was also supported by supply concerns from North Sea refineries and a more than 2% spike in gasoline futures resulting from an explosion at a Chevron Corporation (CVX) plant in California.
By the close, oil for September delivery jumped $1.47, or 1.6%, to land at $93.67 a barrel — its highest price since May 15.
Conversely, the faltering greenback couldn’t buoy gold futures, as investors headed to the sidelines following the precious metal’s recent two-session upswing. December-dated gold slipped $3.40, or 0.2%, to $1,612.80 an ounce.