In the 9:00 AM update we mentioned that the S&P 500 might be hitting some resistance based on bullish percent and point and figure charts. Looking at a bar chart tells the same story.
S&P 500 daily chart
The SPX has rallied right up to the top of a double bottom pattern, but can't break it. The positive news is that we are not seeing a sharp sell off. An overbought stochastic that is trying to turn down, is also suggesting we may see prices consolidating or retracing in the near term. How far is the question? Traders that are long may want to snug up their stops to lock in any profits they've achieved over the past few days.
S&P 500 Winners and Losers
Looking at a list of the best and worst performing stocks in the S&P 500 tells the story of the day. Staples like 3M, Johnson and Johnson, and Coors are holding the SPX up. The worst performing stocks are littered with tech names like Qualcomm, Intel, and Micron Technology. Big cap techs stocks should signal the direction of the S&P 500.