Markets zigzag looking to find direction!
The Dow zigzagged all day, moving up and down within a 97 point range, ultimately ending the day just about where it started. A sell off at the open was quickly followed by nearly a 100 point rally after the monthly new home sales figures were released. As investors absorbed the monthly new home sales data the markets shifted direction again and pulled back about 70 points from the high of the day. The Dow spent the rest of the day trading within a narrow range. When reviewing the 30 minute interval of the major stock indices you will notice a wedge formation building. The longer and tighter the band gets, the bigger the move that usually follows! Are we consolidating before the next move higher or are investors starting to peal off profits in anticipation of a pull back? Only time will tell! The Dow Jones Industrial Average ended the day up 4.23 points, to close at 9543.52. The S&P 500 gained 0.12 points, to close at 1028.12. The NASDAQ finished the day up 0.20 points to close at 2024.43.
