Wednesday, November 11, 2009 2:48 PM
S&P 500 on its tip toes
Simon Avery
Although gains are modest on North American markets Wednesday, the session is something of a watershed in the dramatic storyline of the markets’ rise from the ashes of March.
For one hour in mid-morning trading, the S&P 500 rested above 1,100 points. That’s only the second time this year that the critical market barometer has seen those heights. The first occasion was the middle of October, but the S&P couldn’t hold the ground and gave it back before the close.
In mid-afternoon trading on Wednesday the S&P 500 stood at 1097.85, up 4.84 points.
Technical analysts say the 1,100 level is a point of big resistance for the S&P, so many are holding their breath Wednesday to see whether the index finds the extra shot of adrenaline it needs to close above the psychological ceiling.
Helping lift the S&P in New York were MBIA Inc., the insurance and financial services firm, up 9 per cent, builder KB Home, up 5 per cent, and Southwest Airlines, also up 5 per cent. Macy’s, the No. 2 department store chain in the U.S., was acting as a drag, down nearly 8 per cent on disappointing earnings news.
