After consolidating around 10,600 and the 200-dma for the past four days, the Dow is trying to break out of its recent trading range.
Dow Industrials Daily Chart
10,740 marked the near term high, and the Dow has been battling with that level for the better part of the afternoon. If that level can be surpassed, 10,800 should offer some stiffer resistance, and now has the added resistance of the 50-dma. If that level turns back prices, a reversal could easily find 10,500.
General Motors and Citibank Daily Charts
Two of the stocks that are helping the Dow the most are General Motors and Citigroup. General Motors is up $2.70 on news that rebate incentives should help June sales come in better than expected. The jump has pushed GM above a previous high at $64, and looks like it should close there. Being one of the members of the strong banking sector, Citibank has jumped $4 in 5 days. The puts it right at the previous high at $53, but will there be enough left in the tank to push prices past that resistance? With several of the Dow components getting close to resistance, it aids the theory of the Dow moving slightly higher to 10,800, but then having to pull back and rest up for another run.