Well, I Believe That Is Resistance

Did you notice what happened this morning amidst all the hoopla about the Dow's highest finish since May 2008 and the S&P 500 heading for its 11th positive close of the past 13 sessions? I'll tell you what happened: the July 27 gap and island reversal. As I noted in last Friday's column, that level was expected to stall prices -- and stall prices it did.

The S&P made a new multi-month high of 1333.47, about 1.5 points above its July 27 gap at 1331.94. It has now pulled back to fill the opening gap at 1326.06, and then some. So far, it's declined about 13 points from the early highs to 1320.55, or about 1%. (The chart below only shows the pullback to 1322.35, though since the chart was generated at about 12 p.m. EST, and the market has since sold off some more.)...414 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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