U.S. stocks and ETFs traded mostly sideways on Wednesday as major stock indexes stall near all time highs.
For the day, U.S. stocks and ETFs meandered, as the Dow Jones Industrial Average (NYSEARCA:DIA) gained 0.05%, the S&P 500 (NYSEARCA:SPY) was virtually flat with a 0.05% gain, the Nasdaq 100 (NYSEARCA:QQQ) declined 0.1% and the Russell 2000 (NYSEARCA:IWM) gained 0.34%.
In other major markets, gold (NYSEARCA:GLD) gained 0.26% and oil lost -0.03%.
Major U.S. stock indexes and ETFs have stalled just short of all time highs and now are moving sideways as momentum wanes.
The key numbers to watch for are:
1527, the S&P 500 closing high, March, 2000.
1565, the S&P 500 closing high, October, 2007.
14,164, the Dow Jones Industrial Average closing high, October, 2007.
These levels act as huge resistance levels going back for more than a decade. The previous two times these levels were reached, major declines ensued and now stock and ETF indexes will have to break higher and sustain these levels before a major new bull market can be confirmed.
Significant headwinds remain with the upcoming “sequestration” debate that will likely result in significant cuts to government spending which will slow the economy and investors are becoming overly bullish which is usually associated with a market top rather than a bottom.