Market Recap - 7/20/2015

Today, the market continues its quest to enter the record book. The SPX came within 2 points to its all time high of 2134.72 made on 5/20/15, and 2 points above its all time closing high of 2130.82 made on 5/21/15. The NASDAQ 100, NDX stayed above the new multi-year high throughout most of the session. It came within 10.60 points from the tech bubble all time closing high of 4704.73 made on 3/27/2000. While these two market indexes are at new high territory, the market breadth continues to behave negatively with decliners outnumbered the advancers by a margin of 2 to 1 and the DVOL ahead of the UVOL.

(click on the chart to enlarge)


The SPX closed with a gain of 1.64 or 0.08%, DJI closed up 13.96 or 0.08%, NDX closed +18.07 or 0.39%, and the RUT close with a loss of -6.87 or -0.54%. Once again, the large cap tech stocks pushed the market higher today, and the fuel came mostly from AAPL and FB. AAPL came within 3 cents of its all time high of 133 and closed at 132.07, and FB went to a new all time high of 98.60 and closed at 97.91, a gain of 3.10 or +2.94.

The odds for a pullback will increase as the market continues to move higher with no improvement on the breadth. If the market pulls back, the 2080 could be a potential support for the SPX, and the previous multi-year high near 4562 could be a potential support for the NDX. And if the market continues to move up, then one should expect the SPX to put in another new all time high and the NDX take out the tech bubble high of 4816.35.

SPX




NDX




IBM reported earnings after the close today and its stock price plummeted in the after hour. This could put pressure on the SPX & DJI tomorrow. This pressure could be temporary as AAPL is scheduled to report its earnings after the close tomorrow.