by Sam Collins | November 6, 2012 2:19 am
Stocks rebounded on Monday after a slow start that looked like a continuation of Friday’s losses. Tech stocks outperformed other sectors as Apple (NASDAQ:AAPL), Netflix (NASDAQ:NFLX) and Google (NASDAQ:GOOG) led the minor recovery. But volume was light, indicating investors’ caution prior to today’s national elections.
At Tuesday’s close, the Dow Jones Industrial Average was up 19 points to 13,112, the S&P 500 rose 3 points to 1,417, and the Nasdaq gained 18 points at 3,000. The NYSE traded 599 million shares and the Nasdaq crossed 349 million. On the Big Board, advancers had a slight edge over decliners, and on the Nasdaq, advancers were ahead by 1.5-to-1.
Last week, the Dow attempted to break through the resistance line at 13,295, but was turned aside. However, it found support at around 13,000, which is just above its 200-day moving average. With MACD oversold for all of the major indices, the chance of a sideways move is strong.
Conclusion: The Nasdaq remains the most sensitive and troublesome index (see Nov. 2 Daily Market Outlook). It is on tenuous footing, but by closing at 3,000 Monday, it succeeded in testing its 200-day moving average for the fifth consecutive day. With the election results now just hours away, it is wise for both traders and investors to stand aside and let the market tell us the direction of its next move.
To see a list of the companies reporting earnings today, click here.
For a list of this week’s economic reports due out, click here.
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