"First things first -- it was Tuesday, so of course the bulls came out swinging," quipped Schaeffer's Senior Technical Strategist Ryan Detrick, CMT. "Think about this for a second. It is nearly May, and Tuesday has been down just twice all year on the S&P 500 Index (SPX)! It is also the only day that has a positive return in 2014. Sparking today's move higher were mostly positive earnings across the board, but the big one was Netflix, Inc. (NASDAQ:NFLX). NFLX had solid earnings, and this helped all the momentum names get some serious buying attention today. After breaking down significantly the past month, money poured into areas like small-caps and biotech." The Dow Jones Industrial Average (DJI) was in positive territory the entire session and closed with a solid gain, just over 100 points shy of its all-time peak.
Continue reading for more on today's market, including:
At its high point today, the Dow Jones Industrial Average (DJI - 16,514.37) was perched at 16,565.71, less than 100 points away from its all-time peak of 16,631.63. By the close, the blue-chip index had pared its gains to a more modest 65.1 points, or 0.4%. The Home Depot, Inc. (NYSE:HD) rose 2.2% to lead the Dow's 19 advancers today, while Exxon Mobil Corporation (NYSE:XOM) brought up the rear, dropping 0.6%.
The S&P 500 Index (SPX - 1,879.55) continued its uptrend, gaining ground for the sixth consecutive session to add 7.7 points, or 0.4%. Elsewhere, the tech-laden Nasdaq Composite (COMP - 4,161.46) was again the day's outperformer, rising 39.9 points, or nearly 1%.
The CBOE Volatility Index (VIX - 13.19) made a few moves into positive territory, but ultimately closed down 0.06 point, or 0.5%. In intraday trading, the market's "fear gauge" dipped south of 13, touching the 12.90 mark.
A Trader's Take:
"Don't look now, but the SPX is up for the month and a good day away from new all-time highs. In fact, the SPX is up six days in a row currently. You'd think that'd be bearish, but turns out it is a good sign for the bulls," noted Detrick. "In 2013, the SPX had four six-day win streaks and a week later, it was higher every time. In fact, it was also higher every time two weeks later. In other words, this much near-term strength is rare, and bodes well for continued higher prices in the near-term."
5 Items on Our Radar Today:
For a look at today's options movers and commodities activity, head to page 2.
The Case for Big Moves in IWM and QQQ
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