Support Hangs Tough

The drop last week took the various averages to just about where support was to be anticipated. In the S&P 500, that was the 1395-1400 area. So in spite of the deluge of uncertainty coming from our Washington politicos, it looked as though the markets were about to rally, if only temporarily. It appeared that somehow the politicians would pull a rabbit out of a hat at the last minute.

The Arms Index moving averages had become somewhat oversold on a short-term basis, and the VIX had moved a long way away from the levels of extreme complacency of recent weeks. Everything but the news pointed to a market advance. And that is what we have now seen reluctantly materialize. It looks as though it will go further in the next few sessions. But be aware, the longer-term work is far less sanguine. A rally in here is likely to become a selling opportunity, in my opinion....214 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.