After yesterday’s quiet action, we did get some volatility today. After a quiet opening, the bulls stepped in, and in a quick buying spree sent stocks up 90 Dow points by late morning. But as the release of the Fed minutes got closer, stocks gave up the gains and the bears took the upper hand sending the Dow down more than 50 points. After rallying back briefly to positive territory right after the release of the minutes, the bears were able to take the ball back and send stocks into negative territory.
By the close, the Dow Jones Industrial Average was down 89 points to finish the day at 16,040. The S&P 500 was down 12 points to close at 1828. Gold was down $14 to trade at $1310 per ounce, while oil was up $1.03 to trade at $103.46 per barrel WTI.
This could be a telling day for the bulls. The S&P touched 1847.50, just below last years close of 1848, and then retreated. If the bulls fail here, we certainly could test the lows established in early February, which was about S&P 1738. Let’s see if the bulls can gather themselves and retake S&P 1848 before the bears take control of the situation. We’ll let you know how the rest of the week plays out.