Off the Charts

The market was unable to build on gains from late last week, slumping to a loss Monday thanks to a late-afternoon sell-off. The Nasdaq suffered the biggest drop, closing down 1.03% as Apple (AAPL) weighed heavily on the index. The Dow and S&P 500 also ended on a negative note as they pushed through Friday's high and closed back below those levels.

Last Thursday saw an aggressive move higher in the S&P, as the index broke out of a very tight range to new multiyear highs. That breakout should lead to a multiweek move higher, though a bit of rest may be in order. The S&P has extended too far from its eight- and 21-day moving averages, which is usually a precursor to a rest or pullback. Rest and small pullbacks are healthy in bull markets....748 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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