Another Early Rally Goes Up In Smoke
Traders should remember the old market adage, it is not how they open them, it is how they close them. This morning, the major stock indexes started the morning sharply higher, however, that rally began to fade once the opening bell rang at the New York Stock Exchange. Traders are really showing very little buying conviction as almost every intra-day bounce is being met with selling pressure. The SPDR Dow Jones Industrial Average (NYSE:DIA) traded as higher as $110.30 a share. This afternoon, the DIA is trading higher by just 0.63cents to $108.53 a share. Should the DIA somehow rally higher throughout the final hour of the session there will be intra-day resistance around the $109.30 area. The intra-day support for the DIA will be around the $107.75 area.
There are some leading stocks that are still trading in positive territory this afternoon. Stocks such as Apple Inc.(NASDAQ:AAPL), Google Inc.(NASDAQ:GOOG), and Exxon Mobil Corp.(NYSE:XOM) are all trading higher on the session. The leading stock that are not trading higher are the financial stocks such as J.P. Morgan Chase & Co.(NYSE:JPM), Wells Fargo & Co.(NYSE:WFC), and Citigroup Inc.(NYSE:C). The financial stocks are the sector of the market that needs to bounce if the overall stock indexes are to hold their early gains into the close. Until the financial stocks can find a low and stage a rally the major stock indexes can be in for some very volatile and turbulent action.