Friends,
Well, we finally got a little action today. Unfortunately for the bulls, the action was mostly negative. Stocks got an early bounce led by another early charge by Apple, but after an unknown research firm downgraded Apple shares from a buy to a hold, the shares reversed course and turned a plus 10 point gain into a more than 15 point loss. More importantly the S&P 500 traded right into the 1426 resistance area, only to run out of steam and reverse course.
By the close, the Dow Jones Industrial Average was down 68 points to close at 13,203. The S&P 500 was down 5 points to finish the day at 1413. Gold continued to climb finishing the day up $16 to trade at $1639 per ounce, while oil was up $.30 to trade at $96.56 per barrel WTI. Oil has just continued to climb in recent weeks. By the close Apple shares were down $9.09 per share.
This was the first day in a couple of weeks, that the bears could actually growl just a bit. The fear for the bulls was that the S&P would run into resistance near 1425 and possibly form a triple top on the technical charts. Now traders will turn their eyes to the support levels on the charts, with 1412 then 1400 being important numbers on the downside. If they hold then the bulls may regroup and take another shot at 1425. If they don’t hold the bears may be able to take high ground.
We have a lot of economic numbers coming the next few days and potential news out of Spain this week. Stay tuned, we just might be awakening from the recent sleep. We’ll keep you informed.
Have a nice evening everyone.
