The bulls used an early morning surge to push new highs by the time Wall Street went to lunch but the rest of the session belonged to the bears. The run up to the top of resistance came when the European markets were closing and some of the U.S. market’s strength has come after their close over the past couple of weeks. Not yesterday.
The Dow declined 68 points, or 0.5%, to settle at 13,203. The blue-chips touched a high of 13,330 and came within 8 points of taking out May’s 52-week high of 13,338. The index reversed course soon afterwards and traded down to 13,186 before holding our 13,200 support target. The bears will try to push the action towards 13K while the bulls will try to stick a close above the Dow’s 52-week high.
The S&P 500 fell 5 points, or 0.4%, to end at 1,413. The index reached a fresh 52-week high of 1,426.68 before touching near-term support at 1,410. There is further risk down to 1,400 but yesterday’s pop opened the door for a run to 1,450 if the bulls can hold fort. We normally show you charts on Monday’s but we wanted to update the 10-year technical picture we showed you so that you can visually see what the bullish breakout could mean.
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