Gold and silver both fell back off morning highs by the end of the day, but even though this is a reaction to intraday resistance levels, there is no price pattern to yet confirm the start of a larger daily correction. Meanwhile, oil just broke higher out of a week-long trading range and ended the session near highs with no signs of even an intraday correction beginning again as we head into Thursday.
Nasdaq Composite (Figure 3)
The Dow Jones Industrial Average ($DJI) had a gain of 8.78 points, or 0.07%, and closed at 12,066.80 on Wednesday. Nearly half of the Dow's thirty index components posted a gain for the mixed session. The leaders were Caterpillar Inc. (CAT) (+1.11%), 3M (MMM) (+0.95%), Verizon (VZ) (+0.89%), and Hewlett-Packard (HPQ) (+0.77%). The top decliners were JP Morgan Chase (JPM) (-0.86%), Boeing (BA) (-0.78%), Coca-Cola (KO) (-0.74%), and Travelers (TRV) (-0.69%).
The S&P 500 ($SPX) rose 2.11 points, or 0.16%, and closed at 1,308.44. Wednesday's strongest percentage performers in the index were Xilinx Inc. (XLNX) (+5.63%), Cameron International Corp. (CAM) (+4.71%), Eastman Chem. Co. (EMN) (+3.72%), and KLA-Tencor Corp. (KLAC) (+3.61%). The weakest percentage performers were Hudson City Bancorp (HCBK) (-8.99%), Metlife Inc. (MET) (-5.71%), NVIDIA (NVDA) (-4.16%), and Motorola Mobility Holdings (MMI) (-3.80%).
The Nasdaq Composite ($COMPX) ended the session higher by 10.66 points, or 0.39%, on Wednesday and it closed at 2,748.07. Xilinx (XLNX) (+5.63%) was the top performer in the Nasdaq-100. It was followed by Lam Research (LRCX) (+3.64%), KLA-Tencor (KLAC) (+3.61%), and Yahoo (YHOO) (+3.29%). The weakest index components in the Nasdaq-100 were NVIDIA (NVDA) (-4.16%), Joy Global (JOYG) (-2.76%), Costco Wholesale Corp. (COST) (-2.53%), and Autodesk Inc. (ADSK) (-2.09%).
Unless otherwise stated, the index action described in this article relates to the E-mini futures contracts for the respective indices. Actual index action may differ slightly in terms of pattern formation, although the market bias will remain the same.
Toni Hansen is president and co-founder of the Bastiat Group Inc., DBA Trading From Main Street. Toni is one of the most respected technical analysts and traders in the industry. She has been trading and educating new traders, money managers, professional market analysts and traders throughout the boom and bust of the last decade. She has worked in conjunction with some of the world's top financial exchanges. Learn more about Toni Hansen and the educational services she provides through her website at http://www.tonihansen.com.