"A day after the huge Fed-induced rally, the market rested," said Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. "When you think about it, the fact that we didn't see a big post-Fed hangover and sell-off is a welcome sign. During the year, most Fed days have seen a sell-off, only to bounce back the next day. Well, this time we had some big-time strength on the Fed, but no next-day weakness. Could this be a small clue that we'll have a Santa Claus rally to end the year?" Meanwhile, the Dow Jones Industrial Average (DJI) reached a new technical milestone, and finished modestly in the black.
Continue reading for more on today's market, including:
The Dow Jones Industrial Average (DJI - 16,179.08) spent time on both sides of breakeven, but managed to touch a record intraday peak of 16,194.72 during the afternoon hours. By the time the dust settled, the Dow was up 11.1 points, or 0.1% -- marking another all-time closing high. The blue-chip bellwether's 12 advancers were led by Chevron Corporation's (NYSE:CVX) 1.3% gain, while Microsoft Corporation (NASDAQ:MSFT) and Wal-Mart Stores, Inc. (NYSE:WMT) paced the 18 decliners with losses of 0.9% each.
The S&P 500 Index (SPX - 1,809.60) dropped to a session low of 1,801.35 this morning, but narrowed its losses to 1.1 points, or roughly 0.1%, for the day. Meanwhile, the Nasdaq Composite (COMP - 4,058.13) finished 11.9 points, or 0.3%, lower.
Elsewhere, the CBOE Volatility Index (VIX - 14.15) was parked in negative territory during the early hours of trading, but closed 0.4 point, or 2.5%, higher for the session.
A Trader's Take:
"Another day, and more encouraging economic data," Detrick went on. "The Philadelphia Fed and index of leading economic indicators both showed economic improvement, but the one thing I was impressed with was AK Steel Holding Corporation (NYSE:AKS) upping its guidance. This sparked a big rally in steel stocks. If the economy is truly going to improve next year, sectors like steel will be big benefactors. Lastly, tomorrow is December options expiration. Remember to close out your trades, and hopefully you had some nice winners."
5 Items on Our Radar Today:
For a look at today's options movers and commodities activity, head to page 2.
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