Posted by: Ben Levisohn on July 23, 2009
U.S. stock markets rallied today, with the Dow Jones Industrial Average, the Standard & Poors 500 stock Index and the NASDAQ Composite all finishing the day up over 2%. Both the Dow and the S&P broke through important levels of resistance, and the Dow closed above 9,000 for the first time since January. “We hadn’t made a clear break of June highs,” says Ned Davis Research’s Will Geisdorf. “Today was the first day we truly cleared above that June resistance level.”
Technical analysts were elated. For months, they’ve been trying to convince their nervous clients to go all-in on the stock market. The pointed to low downside volume, as well as the lack of strong selling during the consolidation that took place during the past month.
But today’s move confirmed that the current upswing isn’t just a dead-cat bounce but an honest-to-goodness bull market, even if it’s “one of the most unloved and doubted bull markets in history,” says InvesTech Research’s James Stack.