The market was strong in the morning, but, slipped back into the red in the afternoon. It did finally managed to close with small gains. Energy stocks were strong today, especially oil services: DO +3.51%; NE +8.35%; RIG +4.94%; NOV +2.55%. This group has been very strong since a great earnings report from NE last week.
After the market, AXP reported earnings that fell 72%, but, perhaps not as bad as some had feared. The stock was trading +2.63% higher in after-hours. TXN posted smaller-than-expected drop in its quarterly profits. Its shares traded +5% higher after the news.
The Dow ended up +38.47 points; SPX added +4.62 points; Nasdaq gained +12.17 points:
OIH (oil services) added +3.42%. BTK (biotechs), SOXX (semiconductors), and INX2 (internet) all recorded small gains. XLF (financials), however, lost 1.78%. GLD (gold) and SLV (silver) were slightly higher. FXI (Chinese ADRs) was essentially flat.
SPX added +4.62 points to close at 836.57. It tested the 850 level today, but, was not able to keep above that level. The MACD was flat.
Nasdaq gained +12.17 points to close at 1489.46. It went above the 1500 level intraday, but, closed just under. The MACD flattened.
The techs, once again, were stronger than the overall market. But still, without sustainable strength in the financials, the market did not go far. The resistance levels (mentioned in my Market Forecast this weekend) SPX 850 and Nasdaq 1500 were tested, but, the market was not able to close above those levels. The market is bound within a tight range: SPX 830 and SPX 850. XLF, the financials ETF, rose above $9 today, but, sank below for the close. XLF is vulnerable under this $9 level. So, we’ll have to be very careful. Any strength in the overall market will need to be able to sustain above SPX 850 to hold.
Good night and HappyTrading! ™