After a day of quiet gains on Monday, the volatility returned Tuesday although markets did not gyrate intraday, rather they recorded a smooth uptrend. The S&P 500 led the way with a 1.3% advance and the Nasdaq tacked on 1.1%. The S&P 500 is fast approaching the round 2000 which was supportive earlier in the year during January and February. Has that level of prior support now become resistance? The Nasdaq is nearing its flattening out 200 day SMA. Many were calling for a retest of the August lows to occur and they still might be, perhaps Thursday, but for the time being the benchmarks are doing what they best like to do, confound the most. All of the 10 major S&P 500 sectors were higher today with 6 of the 10 up better than 1%. Energy just missed that cut but crude did move nicely Tuesday. The best behaving sectors today included the industrials, tech and consumer discretionary, the last somewhat of a surprise as retail sales numbers did come up a bit short premarket. UPS disclosed today that it will hire almost 100,000 workers for the holiday season. They normally have a good pulse on the situation so perhaps consumers will have a healthy appetite heading into year end. Today the stock popped 3.6% in firm volume taking out the round par number and a bearish head and shoulders pattern in the process. We examined the chart in our Tuesday 9/8 Game Plan and we were WRONG about the scenario, although the 94.25 trigger was never activated.
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