The indestructible Industrials, the Dow, that is, seems to have more energy in it as it continued its winning ways on Tuesday with another record closing high. The Dow component PG, Procter Gamble, reported strong earnings and guidance early and happened to be one of the few Dow stocks down on Tuesday. Go figure.
The broader market failed to enjoy the out performance of the Dow. The markets all had a good couple of hours to end the day higher but the Dow showed its independent strength. Even the Dow failed to best its high from Monday…
The position of the indexes is extremely important this evening and we are going to be cautious as the week progresses, as we look to that all important jobs’ report on Friday.
The volume was surprisingly strong on Tuesday which brings in our final requirement for a high. We like to see supply meeting demand at the top, heavy volume means there are buyers there but the sellers have decided to keep the lid on prices. Both trading days in May have exceeded 1.7 billion shares on the NYSE and the only day in April that had higher volume than these two days was options expiration Friday.
The market is in a highly critical point right now and it has Not resolved itself as of tonight and we are going to have to wait until it does.
Real Estate News:
On Tuesday pending homes sales were announced at down 4.9% which continues to show weak housing numbers. While the market seems to have deemed the real estate Problem to be behind us, it keeps nipping at our heels.
Dow Industrials: 13,136.14 +73.23 (new record closing high)
QQQRS: 0.56 bid
QQQRT: 0.88 bid