Right Into a Concrete Barrier

The market started Monday like a rushing freight train, but after only 10 minutes of trading it seemed to run into a concrete barrier. From then on, virtually no further progress was made. That was disconcerting, because the Dow was right at the highs of July 3 and the S&P 500 was a bit below that level. There is obviously a great deal of overhead resistance here -- and, as a result, the market looks as if it has been in a long sideways area for the last month. We see that on the first chart below.

A further concern lies in the action seen among the smaller names, as represented by the Russell 2000 on the second chart. The breakdown is unmistakable, and the rally Monday did little to regain the sharp losses of the prior week. It looks as though the generals are still leading from the front, but the troops have turned and run. This is not a good sign, in spite of the outward bullish appearance of the close approach to the old highs....280 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.