Stocks found support at key levels Wednesday – 1040 on the SPX, 2100 on the Naz, 590 on the Russell 2K, and 10,000 on the Dow. All of the indices except the Naz actually violated these support levels before bouncing back to close above them. On a day that saw more lousy economic data, the buyers came in at support.
On the negative side, the reversal came on lighter volume than Tuesday, and there was selling pressure at day’s end. Still, we’ll take it. We’re getting near month end, so we’ll be looking for more support at these levels, but it’s been a volatile summer for stock trading, and we’re going into the historically difficult month of September. Caution is still warranted.