The Dow has been diving in an out of positive territory for most of the day, and is once again positive, up 49. Yesterday I pointed out that 10,236 was the 50% retracement level that was broken, and that level is acting as resistance today. Trying to drive the Dow above this level is General Motors.
General Motors Daily Chart
Reuters is reporting that General Motors (NYSE:GM) is about to report a sharp drop in second-quarter earnings compared to last years record numbers, but perhaps somebody knows otherwise since the stock is up $2.11. GM's gain is helping to keep the Dow in positive territory, but resistance around $65 could mitigate further gains in both GM and the Dow. Last week GM made an attempt to break this level, but failed miserably. Maybe not miserably, but the stock dropped over $3 in two days. GM found support at $61.50, and that area should once again support price if GM is unable to crack $65.
Wal-Mart Daily Chart
Wal-Mart (NYSE:WMT) was on the brink breaking its symmetrical triangle to the downside, but today's $1.66 gain has temporarily put a halt to that. This gain is also helping the Dow, but like GM, Wal-Mart has a resistance overhead (the steep downtrend) that could prevent further gains in the stock and the Dow. Looking into my crystal ball, I'm getting a fuzzy picture that perhaps today's gain means discount store retails sales are going to come in better on Friday. Abercrombie and Fitch is down $1.19.