If the market couldn’t get more sporadic on an intra-day basis, it did today. It was like a plastic bag blowing in the wind without direction and without reason. But once the dust settled, the market closed at its highs and with substantial gains. The problem is, that on a technical basis, there was no improvement made.
The most important thing to take from the market’s session today was the fact that the S&P was unable to break through the 850 mark, not on a daily basis, nor on an intraday basis. Instead it closed right below this important resistance level. On that same note, the S&P is also right below the long-term downward trend line that if failed to break through last week.
Overall, the market’s rally today should be taken with a grain of salt and viewed with a skeptical eye.
Here’s the Nasdaq and S&P charts…