WALL STREET : Bluechips Lift DJIA; Bulls Add 76 Points

S&P 500 ended atop its own 10-day trendline for the first time in June 
Stocks initially followed their European comrades into the red, as the Street jeered the lack of a resolution in the Greek bailout saga. Specifically, euro zone leaders gave the debt-strapped nation an ultimatum: cut spending or sacrifice additional emergency loans. However, the bulls eventually reclaimed the throne, as investors expressed optimism ahead of tomorrow's austerity vote in Athens. In addition, a quiet day on the economic front provided little fodder for the bears, which allowed speculators to hone in on a slew of stock-specific celebrations, especially among the blue chips. 

Against this backdrop, the Dow Jones Industrial Average (DJIA) notched a win over its 10-day moving average for just the third time since early May, extending its winning streak to three straight sessions. Furthermore, the CBOE Market Volatility Index (VIX) -- or the market's "fear index" -- surrendered roughly 8.5%, ending just a hair's breadth south of the closely watched 20 marker.

The Dow Jones Industrial Average (DJIA – 12,080.38) tacked on 76 points, or 0.6%, though its upward momentum stalled in the 12,100 level. Only five of the Dow's 30 blue chips bucked the trend, led by financial concerns Bank of America (BAC) and JPMorgan Chase (JPM), which each gave up nearly 0.8%. Meanwhile, Caterpillar (CAT) paced the 25 advancing equities, tacking on 2.3% by the close.
The S&P 500 Index (SPX – 1,278.36) added almost 6.9 points, or 0.5%, to end atop its own 10-day trendline for the first time in June. Finally, the Nasdaq Composite (COMP – 2,629.66) ended with a gain of 13.2 points, or 0.5%, but continues to stare up at its 10-day moving average, currently located in the 2,650 ballpark.

TECHNICAL ANALYSIS
Dow Jones Industrial Average

The Dow closed higher due to short covering on Monday as it consolidated some of the decline off May's high. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are oversold and are turning neutral to bullish signaling that sideways to higher prices are possible near-term.

Closes above the 20-day moving average crossing at 12,174 are needed to confirm that a low has been posted. If the Dow extends the decline off May's high, the 87% retracement level of the March-May rally crossing at 11,717 is the next downside target.

First resistance is last Tuesday's high crossing at 12,119.

Second resistance is the 20-day moving average crossing at 12,174.

First support is last Wednesday's low crossing at 11,862.

Second support is the 87% retracement level of the March-May rally crossing at 11,717. 

HAPPY TRADING & GOODLUCK2ALL