Stocks opened lower and stayed the majority of the day in the negative. Activity levels were low and market ranges extremely narrow. It was only the last hour of the day (as is so often the case) which brought activity into the market. Buyers became more aggressive and finally the major averages managed to edge out small gains.
The Dow closed up 28.34 points and the broader based S&P was up 1.32 points. ( 0.32 % and 0.14 % respectively)
Absent any major economic news the biggest piece of news turned out to be the market itself. The Dow is now positive for the year and has now officially managed to erase all of the year to date losses.
Today's positive close is perhaps more due to the absence of sellers as opposed to buyers being in the drivers seat. Activity was rather lackluster and the market was once again not able to break out of the range we have been forming for the last 10 days.
There is a saying that the weak money gives way on a Friday and it certainly looks like this was the case today. Buyers gained the upper end during the last hour and that was all what it took to edge out a positive close.
Next week should be more interesting with a slew of reports scheduled for release. Also...any breakout from the current range should stimulate a bigger move.
My bias is still positive and all trends are up. It kind of looks to me that some kind of pullback is needed to entice buyers back into the market but if we don't get it....doesn't matter. The market should just head higher.
See you all next weekend.
Steve Benger
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