For the minions cheering the upside breakout of the S&P 500's trading range, today was either the best thing that could have happened or the worry that will keep them up all night tonight.
With today's roller coaster ending on a down note the index is now testing Monday's breakout. What is spookier is that the afternoon low was just about the same as the morning gap down low. In other words, all that good news that got juices flowing dried up.
I still think that the correct patter for the summer was a rising wedge not a trading range (see Wednesday's Barron's Online column). Or, just put up a NYSE composite chart to see.
So, do you buy 'em on this pullback or do you panic if and when prices go below the breakout point seen Monday? In the words of Bill O'Reilly, "you make the call."