The S&P500 broke out today out of a two month consolidation, clearing recent resistance. meanwhile, the Nasdaq and the Russell 2000 continue to lag.
Of course, these things always seem to happen when I am in meetings all day . . .
UPDATE: Janaury 25, 2007, 12:35 pm
Markets are getting pounded today, and it looks like we could give back all of yesterday’s gains and then some. Yesterday is looking like a Bull Trap.
I think that King nailed this one (read his comments below here). Yesterday was a mechanical market action, purposefully driven by futures buyers to trigger short stop losses and muscle the market higher.
Without that mechanixal trade, there was not a whole lot of buying interest to be found…