First Move Out of the Range Isn't the Real Move

Tuesday was an interesting day in the market. No, we haven't moved out of the range on a closing basis, but we did get a false breakout of sorts, didn't we? Let's go back to the chart of the S&P 500 that we looked at Monday morning.

The one thing all these tight trading ranges had in common was that the first move out of them was not the real move. Each time we had a fake-out first. In January, it was to the upside before we retreated back into the range and then went up. In April/May, the move was down first before we ramped upward. In June we had that midmonth move up and out, and then we gave it all back and more in the next two weeks....315 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.