Friends
Contrary to yesterday’s positive economic news, today we got less than stellar data including a weakening ISM Manufacturing number and slightly disappointing Consumer Sentiment number. The Bulls were not deterred as stocks gained more than 200 Dow points at the open. Yes, we gave back those gains and dipped into negative territory midday, but the buyers reappeared later in the trading session and stocks began March with a nice gain.
By the close, the Dow Jones Industrial Average was up 110 points to finish the day at 26,026. The S&P 500 was up 19 points to close at 2,803. Gold was down $21 to trade at $1,294 per ounce, while oil was down $1.45 to trade at $55.77 per barrel WTI.
As we enter March, stocks are challenging a formidable resistance level of 2800 on the S&P. It’s been quite a move to the upside since the Christmas Eve debacle, and it appears the bulls are trying to catch their breath. Though, it will become important at some point that the bulls decisively break through resistance, a bit of a pause right here could set us up for another advance in the Spring. A pause that refreshes, if you will. Let’s see how March unfolds and if the bulls can keep the bears on the defensive.
Have a great weekend everyone.
Jim
