While the S&P 500 traded above 730 at one point today, the rally failed to hold. By the time the closing bell rang, the index finished a point and change higher, which these days equates to about 25 basis points. Technicians attributed the sell-off to resistance at the intraday lows (741) reached last November. Going forward, this will be a key level to watch. We would note, however, that on the way down, the S&P 500 only managed a minor bounce on its first and only successful test of this level in late February. As a result, the bulls are hoping that it's as porous on the way up as it was on the way down.
"Technicians attributed the sell-off to resistance at the 741 level..."
There's only one problem with that excuse. The S&P high this day was 731.92. "Contact high" ?
Posted by: dave | March 12, 2009 at 12:39 AM
NFW
Posted by: DavosSherman | March 12, 2009 at 07:25 AM