The Dow and S&P were able to close only marginally higher, giving up gains from a healthy up open this morning. The Nasdaq was significantly strong, surging 0.6% higher as momentum tech stocks saw some money rotate back in. Despite trading sharply lower for the early part of the session, the S&P did once again hold its 21-day moving average. Until a close below that point, it would not be prudent to commit to shorts, while persistent selling pressure makes it hard to sink your teeth into longs.
Solid earnings per share this morning (although coupled with a slight revenue shortfall) from JP Morgan Chase & Co. (JPM) helped boost the futures and the banking sector, but JPM and the group traded lower all day. Traders were looking perhaps for a strong report from JPM to ignite the relatively weak sector, but it remains in the penalty box for now. The casinos were perhaps the strongest pocket in the market today, led by MGM Resorts International (MGM) which announced it was boosting its ownership stake in a Macau joint venture.
For more commentary, watch the T3Live.com Daily Recap with Scott Redler (below).
*DISCLOSURE: Scott Redler is long AAPL, GLD, SOHU, MGM, POT, BBBY. Short SLV, SODA, VRA.
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