Volume picked up today on the Dow and S&P 500, but it was another flat day. The bulls tried hard to get the market up today. CNBC keeps harping on how important it is for the Dow to close above 8,521. A close above that level would make a higher high on the Dow, thus confirming its up-trend. I, for one, don't pay much attention to the Dow because it's only comprised of 30 stocks. I won't even mention my issues with the way the index is computed.. I think there are many better indices to use as a gauge of the market - the S&P 500, S&P 600, NASDAQ Composite, NYSE Composite, Value Line Index ... Anyway, the action in the Dow has been fun to watch this week. Today it failed stay above 8,521 for the second day in a row. The bulls gave it a hell of a try, but sellers stepped in during the last few minutes of the day and sent the index reeling back below 8,500.
Today's Highlights:
The second day in a row of spinning tops in the major indices.
Today was a distribution day on the Dow and S&P 500.
The Dow failed to close over 8,521.
So I remain short & skeptical of this rally in the near term.
