The Market Giveth and The Market Taketh Away - and Giveth again!
This morning the S&P futures were positive throughout the pre- market period - finishing about 10-points above fair value signifying a rather strong positive opening. It looked like the wishful thinkers were going to have a day to remember. And that's exactly how it started.
Chart of the DOW:
Watching the DOW bounce around a 290 point trading range was like watching a tennis match. I felt like Linda Blair in The Exorcist. The eternal optimists were happy as the DOW moved up to the 7530 level early. Then, before you can say, "Gee, this may be a bottom," it gave back 60 points to 7470. We're just getting started. The DOW then decided to test the high and move back up to over 7520. The air was a little thin and so was the buying, so down it went - about 90 points -- until it reached its intra-day low of 7331 at about noon. Then, while the sellers were at lunch, the DOW reversed direction, showed some strength, and slowly made its way up to the high for the day - 7623 shortly before 3 p.m. But, as usual, it was too good to be true. Profit takers stepped in and snatched back over 75 points and the DOW finished at just over 7500.
A decent day, but let's not break out the cheerleader uniforms just yet. The DOW may have finished positive (18 of the DOW 30 were up), but the broader market showed decliners beating advancers by 1425 to 1325. The NYSE volume was up a little from yesterday at 1.94 million shares and the DOW 78-point gain snapped a four-day losing streak.