The US domestic stock and equities markets picked up right where it left off last week, charging to new highs. Small caps (IWM/RUT) and micro-caps continue outperforming the broad market, surging another 2.5% on Monday (+16% year-to-date) while the Dow Jones Industrial Average (INDU/DIA), the S&P 500 large cap index (SPX), and the Nasdaq 100 (NDX/QQQ) closed near session highs. A burst in buy programs helped lift all four indices in the final 10 minutes of trading. It’s also important to note that, small caps are expected to benefit most from an rebounding economy.
Volume rose on the Nasdaq, as advancing stocks led decliners by a 7-to-2 margin. The number of stocks hitting new highs remained elevated.
Markets made an initial high tagging the 3909 gamma level (OI) while spending the remaining hours of the day between a low of 3886 and 3900. The VIX broke lower during that final 15 minutes of trading and the SPX ramped up to 3915. A lot of that was the result of “same day” gaming. Monday’s “weeklies” expiration printed large volume at 3910-3915, so that 10 handle move in the last 15 minutes pushed close to 40,000 contracts ITM.
Futures are off (+/-) 3 handles, trading hear 3905 as we start the Tuesday session.
MarketSmith Blue Dot Scan
These candidates are from the MarketSmith Blue Dot Scan. Watch these for potential breakouts as RS Line rises to new highs.
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Happy Trading,
Vinny
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