Bulls Get Monday Win/ VIX Back Below 15/ Profit Alert! – Momentum …

Bulls Get Monday Win/ VIX Back Below 15/ Profit Alert! – Momentum …

MomentumOptionsTrading.com Pre-Market Update for 8/12/2014

Bulls Get Monday Win/ VIX Back Below 15/ Profit Alert!

9:00 a.m. (EST)

The bulls won their third-straight Monday session and cleared resistance, for the most part, following a continued rally off of last Thursday’s lows. Check one.

Check two came on lowered volatility, as geopolitical tensions eased and the VIX deflated. And, check three? Well, that came after the bell from the Food and Drug Administration. The Dow gained 16 points, or 0.1%, to settle at 16,570. The blue-chips traded to a high of 16,627 but failed to hold resistance at 16,600 after trading in positive territory throughout the session. I mentioned that the bigger test would come at 16,800-17,000 for the bulls, while the bears are looking to get a close below 16,350 this week.

The S&P 500 added 5 points, or 0.3%, to finish at 1,937. The index reached a peak of 1,944.90 shortly after the open but was unable to hold near-term resistance at 1,940 into the final bell. A close above this level would be bullish for a run at 1,950-1,960. There is still risk to 1,925-1,900 if the rally fades.

The Nasdaq jumped 30 points, or 0.7%, to end at 4,401. Tech made a run to 4,415 ahead of Wall Street’s lunch break and was able to hold the 4,400 the remainder of the session. The next 50 points will be a possible trend changer, and any pops past 4,450 will be bullish for a run at fresh 52-week highs. A print below 4,350 again would be very bearish.

The Russell 2000 advanced 10 points, or 0.9%, to close at 1,142. The small-caps were on fire for much of the first half of trading after opening at 1,136 and reaching 1,148.89. Resistance at 1,150 halted the momentum, but the bulls held 1,140 for the remainder of the second half. The bulls are eyeing 1,160-1,175 on a close above 1,150, while the bears will be trying to get the action back below 1,130-1,125.

The S&P 500 Volatility Index ($VIX, 14.23, down 1.54) tanked 10% after falling to a low of 13.72 and finishing back below 15. The bulls still need to get below 13.50 before thinking about fresh highs, but they are going in the right direction. The bears are just half of one percent away from triggering 15 again and face a further hurdle at 17.50.

There are specific trade instructions for Exact Sciences (EXAS, $17.09, up $0.42) this morning after the company got some great news following Monday’s close. Shares could reach fresh 52-week peaks and make a run past $20, so pay close attention to how I would like to manage the trade on this morning’s open.

From desk to press, futures are looking like this: Dow (+24); S&P 500 (+3); Nasdaq 100 (+6).

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Bulls Get Monday Win/ VIX Back Below 15/ Profit Alert! – Momentum …

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