Global markets were heading lower until the FOMC meeting minutes cheered investors

It was mostly a down day on U.S. and global stock markets until investors got a look at the most recent Federal Reserve meeting minute which were widely interpreted as being an endorsement for more quantitative easing, QE3, as it has come to be known.

For weeks now, markets have been grinding higher on the hopes for more “free money” and an argument rages over when or if such easing will take place in light of mixed economic data.

After a day spent mostly in the red, the Dow Jones Industrial Average (NYSEARCA:DIA) finished close to flat, down -0.2% for the day.

The S&P 500 (NYSEARCA:SPY) was flat lined with a 0.02% gain, the Nasdaq 100 (NYSEARCA:QQQ) gained 0.4%

Stocks hit yearly highs, run into significant resistance and fall back as VIX surges

The S&P 500 (NYSEARCA:SPY) hit levels last seen four years ago but then fell back, unable to breach significant resistance at current levels.

Current levels act like a ceiling and need to be broken for the uptrend to continue.

Fed President Dennis Lockhart came out against more monetary easing which is not a new position as he has been opposed to current policy for some time.

The Dow Jones Industrial Average (NYSEARCA:DIA) fell 0.5%, the S&P 500 (NYSEARCA:SPY) fell 0.4%, the Nasdaq 100 (NYSEARCA:QQQ) slipped 0.4% and the Russell 2000 (NYSEARCA:IWM) dropped -0.6%.

The Eurodollar (NYSEARCA:FXE) defied the trend with a jump of 1% to $124.72 on hopes for an upcoming


After a six week rally, global stock markets face important tests ahead.

Major  U.S. stock indexes and ETFs closed Friday just below yearly and recovery highs and now stand at serious resistance levels as the dog days of summer slowly draw to a close.

On My Wall Street Radar

chart courtesy of

In the point and figure chart of the S&P 500 (NYSEARCA:SPY) above we can see how prices have now arrived at significant resistance near yearly highs.  Resistance levels At 1420 mark the last significant near term ceiling and 1400, which was resistance, has

green arrowU.S. stock indexes stop just below 2012 highs and post six weeks of gains

On Friday, August 17th, the S&P 500 (NYSEARCA:SPY) closed within 1 point of its 2012 closing high and the Dow Jones Industrial Average (NYSEARCA:DIA) finished 4.12 points below its May 1, 2012 closing high.  Volume and volatility remain at extreme lows as the dog days of summer continue.  This week’s action marked the sixth week in a row of positive finishes for both the Dow Jones Industrial Average (NYSEARCA:DIA) and the S&P 500 (NYSEARCA:SPY)

Consumer sentiment rose in August and July leading indicators advanced 0.4%, beating expectations and improving on last month’s negative reading of -0.4%.

The Nasdaq 100 (NYSEARCA:QQQ) gained 0.44% and the Russell 2000 Index


John Nyaradi, Publisher of Wall Street Sector Selector, appears on Money Life Show hosted by Chuck Jaffe, senior columnist for MarketWatch.

Chuck Jaffe is senior columnist at MarketWatch and writes three weekly columns that are nationally syndicated.  His “Your Funds” column is the most widely read column on mutual fund investing in America and in 2009, Chuck was named to Mutual Fund Wire’s list of the top 40 Most Influential People in Fund Distribution, the only journalist ever to make the list.

In our interview, Chuck and I discuss a wide range of topics including today’s macro

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