ADDENDUM TO TODAY'S MESSAGE: UPSIDE TURNAROUND KEEPS STOCK INDEXES ABOVE 200-DAY LINES
DOW AND SPX REGAIN 200-DAY LINE... An afternoon rally has the look of a potential upside reversal day that has allowed the Dow and the S&P 500 to regain their 200-day lines. Chart 1 shows the Dow Industrials trading higher after hitting a five-month low earlier today. That would also put the Dow back above its 200-day average. Chart 2 shows a similar upside turnaround in the S&P 500. This afternoon's rebound also keeps the SPX above chart support near its March low. This afternoon's turnaround is a short-term improvement for the market and prevented a serious breakdown. We'll take another look at things tomorrow. Whether or not U.S. stocks can build on today's gain may depend on what foreign markets do tomorrow.
(click to view a live version of this chart)
Chart 1
