Stocks rose today with the major indexes finishing with gains ranging between 0.2% and 0.5%. Investor participation was strong. However, today was an options expiration session. Volume typically picks up during these sessions. Market breadth was decent in today's session as well. Following the trend we are raising the support/resistance levels on the S&P 500 (SPY) (see below). We are keeping the support/resistance levels on the DJIA (DIA) and Nasdaq Composite (QQQQ) the same (see below). On the heels of some earnings reports that Wall Street found disappointing stocks managed to finish in positive territory. The utility sector led the advance rising 1.1% while technology lagged falling 0.2%. Technology was the only sector down today. You usually want to see technology companies participating since they provide innovative products/services that drive the economy. Investor complacency remains high and volatility low. Stocks have been resilient but they could be prone to a sharper pullback if the bond market is giving us any clues. Bonds were strong today as the ishares Barclays 20 Year Treasury ETF (symbol: TLT) rose 1.4% and has performed in stride with equities recently. The logical approach right now is to remain cautious when adding stock positions.
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