Sam Collins, InvestorPlace Chief Technical Analyst
On Wednesday, technology stocks led the way to a triple-digit gain for the Dow industrials, driving the senior index to close near the high of the day. And the tech-heavy Nasdaq led the other indices with a gain of 1.1%.
The Fed’s Beige Book, the summary of the country’s economic condition, indicated that there had been “modest to moderate” growth in the past month, that residential housing was “largely positive,” and that employment grew at a “tepid pace.”
At Wednesday’s close, the Dow Jones Industrial Average gained 103 points at 12,909, the S&P 500 rose 9 points to 1,373, and the Nasdaq gained 33 points to close at 2,943. The NYSE traded 726 million shares and the Nasdaq traded 463 million. Advancers led decliners by over 1.5-to-1 on both exchanges.
Wednesday’s 103-point gain broke the intermediate bearish resistance line (red dash down sloping line). The breakout is supported by MACD and stochastic buy signals. The next target for the Dow is the July 3 close at 12,943. Even though the breakout has solid support from the internal indicators, the Dow must break that target in order to confirm it. ... Continue to read.
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