Stocks rallied for a second day on Wednesday as the Dow added another 145-points. The question on investor's minds is whether this is for real or if it is one of the pre-holiday reversals that we often see before a major holiday? You know, the ones that reverse back after the holiday?
Stocks rallied at the open on Tuesday, and never looked back. There was a little selling into the close to take the indices off their highest levels of the day, but the 213-point gain tells the story. Some descending resistance was broken, but it was the 8th consecutive day of alternating losses and gains, so does that mean today will be down?
Stocks chopped around in a tight range for most of the day on Monday, but closed near the lows. The bulls would pop the indices higher, but the bears swatted them back down. By the close stocks were down very slightly with the Dow slipping 8-points. Volume was light and as folks on Wall Street might say, yesterday was a waste of cab fare and a clean shirt.
Stocks gapped up higher on Friday morning and we saw some decent gains across the board, but some afternoon selling took the Dow and S&P 500 well off their early highs. The Dow ended the day up 66-points, which was about half of the 135-point gain it had before noon.
Stocks opened moderately lower on Thursday but the selling accelerated a couple of hours into trading, before we saw some dip buyers show up to produce a little relief rally into the close. The indices still ended with stiff losses as the Dow shed 91-points, but that was more than 100-points off the morning lows.
S&P 500 (C fund)
||Dow Completion (S fund)
||EFA (I fund)
||Bonds (F fund)