This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Markets Up as S&P Gets Whiff of All-Time Closing High

Stocks in this article: OWW SWY

NEW YORK (TheStreet) -- Last Thursday, we mentioned that the markets were searching for a bottom, and this past Friday, we mentioned that the markets may have found a bottom. In retrospect, that was the correct market call from a short-term trading perspective.

The S&P 500 index held its daily buy-trade level of 1842 last Thursday and zoomed higher from there this past Friday and on Monday.

With all this upside momentum on Monday, the S&P 500 was not able to close above its all-time closing high of 1878. This was the third attempt. On the edge, that is not a bullish sign.

The DJIA closed at 16,457.66, up 134.60, and the S&P 500 closed at 1872.34, up 14.72.

Volume was pathetic Monday, which is another bad sign. The up days in 2014 have been common for their lack of buying conviction, as has been mentioned in previous columns.

On a more positive note, just when the bears were growling the most to short this market at 1842, and saying that a market top had been put in, the markets came roaring back again, as has been the case this year. The "buy the dips, sell the rips" philosophy has been the key to trading this market.

As mentioned in Friday's column, the Nasdaq and Russell 2000 indexes were in oversold territory and were both poised for a continued move higher this week. The Nasdaq and Russell 2000 did indeed surge higher on Monday.

The Nasdaq closed up 43.23 points at 4,198.99 and the Russell 2000 closed up 21.22 points at 1173. Both indexes have now worked off their oversold conditions. A traders market, pure and simple.

If the DJIA continues to stay in the green, by Wednesday it will be well into overbought territory according to those same internal algorithm numbers that flagged the Nasdaq and Russell 2000 indexes as being oversold. So, I expect more volatility this week and some selling pressure as the week progresses.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs