The market gapped lower this morning and touched a new 6-month low. The Dow briefly slumped below 9,800, while SPX almost touched 1040. But, the market staged an impressive rally to close just about flat. GS led the financials with a +4.29% gain, closing above the $140 level.
The beaten-down commodity sectors led the bounce. Oil services finally found some buyers: DO +2.3%, SLB +1.49%; even RIG and BP went higher. RIG, in particular, added almost +6%! As discussed in Sector Watch this weekend, coal stocks rallied with the market: CLF +2.85%, BTU +2.87%, MEE +2.36%. Gold miners were also very strong: GOLD +3.45%, NEM +2.29%, ABX +2.99%.
The Dow was down 22.82 points to close at 10,043.75 (made it back above the 10,000 mark); SPX added +0.38 points; Nasdaq slid 2.6 points:
XME (metals and mining) led the market with a +3.04% gain. GDX (gold miners) was right behind, +2.73%. XLF (financials) managed to finish in the green. SOXX (semiconductors) rose +0.58%. FXI (Chinese ADRs) stayed weak.
SPX
SPX added +0.38 points to close at 1074.03. It managed to come back from 1040 to close above 1070!
Nasdaq
Nasdaq slid 2.6 points to close at 2210.95. It tested 2150 and came back to close above 2210.
The market certainly illustrated a pretty impressive bounce today. It has been a very volatile environment. In the past 5 sessions, the SPX traded in a 60-point range from about 1120 to 1040, and wouldn’t you know it, the mid-point of this range is that SPX 1080 we have been discussing:
So, basically since last Thursday, the market has not really changed much. SPX 1080 was the support, and now, will it become a resistance? We’ll have to see if the market can get a follow-through rally tomorrow. If the market breaks above that 1080 level, the next resistance is SPX 1100.
Good night and HappyTrading! ™ 
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