Tremors Around Current Technical Levels

It was a quiet day on Wall Street yesterday as the major indices bounced back and forth across their opening market. Even though the indices received a boost at the start of the session, backed by Monday’s extreme intraday rally, they quickly lost their steam going forward. Furthermore, minor strength from the Dollar yesterday, sent stocks back to their starting mark as investors remained cautious going forward.

From a technical point of view, one must note that even though the Dow Jones has now broken its prior high, the S&P500 and Nasdaq are still trading around their previous peaks. The Dow finished the session with a gain of 0.2%, while the S&P closed in negative territory, with a loss of 0.14%.

According to the monthly blue chip survey, economists are still optimistic and reckon that the U.S economy is now on a healthy path back to economic growth. According to the survey the economic growth should increase by 2.7%, but unemployment will drag along and decrease at a very slow rate. Approximately 52% of the economists speculated that unemployment will decrease to 7%, only in 2013.

Financials lagged for most of the session, but failed to present a major drop due to AIG. According to Bloomberg, Moody’s said that the insurer will be able to repay most, or all of Treasury’s investment, if the financial markets continue to show stability.

The lagging sector of the day was the Industrial sector, finishing with a loss of -0.58%

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