Daily Wrap-up - If at First You Don't Succeed...

5/15/2008 5:04 PM

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SPX

Yesterday we saw a rally that failed as the day wore on. Today we see the reverse - a quiet morning that ends with a bang. The S&P 500 (SPX), Nasdaq Composite (COMP), and Russell 2000 (RUT) gained 1% or more while the Dow Jones Industrial Average (DJIA) was slightly weaker than that.

A look to the sector action shows that the US Oil Fund (USO) was the only area to not see a gain. The Amex Gold Bugs Index (HUI) stopped just short of that resistance but still took the lead with a strong showing. The Oil Service HOLDRS (OIH) and CBOE Internet Index (INX) round out the top three groups.

I ended yesterday's session discussing the small bounce off support. A look to the chart below shows that bounce is now a bit more respectable as the S&P 500 (SPX) is now challenging its recent highs near 1422. It is hard to say whether the SPX still needs to consolidate here before breaking out and resuming the uptrend off the March lows but that is the event to watch for. And that is where I will pick up in the morning. Have a nice evening...

Chart Courtesy of Thomson Financial

Index	Index Value	Point Change	Percent Change
S&P 500 (SPX)	1423.6	14.9 points	1.06 percent
Dow Jones Industrial Average (DJIA)	12992.7	94 points	0.73 percent
Nasdaq Composite (COMP)	2533.7	37.0 points	1.48 percent
Russell 2000 (RUT)	743.4	7.3 points	0.99 percent
CBOE Market Volatility Index (VIX)	16.30	-1.36 points	-7.7 percent