The Wall Street Journal reports,"Market Snap: At the New York close: S&P 500 up 0.8% at 1755.20. DJIA up 0.5% at 15445.24. Nasdaq Comp 0.9% at 4031.52. Treasury yields up; 10-year at 2.622%. Nymex crude oil up 0.8% at $97.19. Gold down 0.7% at $1,251.70/ounce".
How We Got Here: U.S. stocks bounced back modestly on Tuesday after Monday’s rout. Already, you can hear the bulls employing their usual confidence-building mantras: That the 7% selloff in the Dow is a good thing, a needed pause to recoup and digest the huge 2013 gains.
Maybe they’re right. The Dow fell through its 200-day moving average on Monday, but bounced back above it on Tuesday. That’s an important sign of support. But the real technical test will come if the S&P 500 reaches its 200-day moving average, around 1708. That means more selling could be in store, because this selloff probably isn’t going away without a real test of its strength.
