The markets surged higher, Wednesdy, for the second day in a row. The S&P 500 hit a new all-time high before noon as investors began to wonder if it was time to buy the markets again.
For their part, though, professional traders were watching one thing and one thing only: the closing price on the SPDR S&P 500 (SPY).
Which High?
Would the S&P 500 close at a new all-time high or below its former all-time high? When it was all said and done, the former proved the case as the S&P 500 was up .5%, closing at 1,848.38; yet another all-time high.
That's all that mattered to Wall Street's big-money traders since the close above 1,849.44 -- the former all-time high from December 31, 2013 -- meant that a bullish case can be made for a move higher in the markets. Had it closed below that high, it would have been read as a sign that the markets were headed lower.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com