Greg Guenthner

Stocks have hit the snooze button…

For almost two weeks, the Dow Industrials have traded in a very tight range.

How tight?

Well, the difference between the Dow’s intraday high and low has been only 1.35% over the past 13 trading days. That’s the lowest spread since late 1986, according to Bespoke Investment Group.

Of course, the 1986 market pause was one of historic proportions. The low-volatility coil led to a spectacular run-up in 1987 that didn’t slow down until the epic Black Monday collapse that October.

Which way will the Dow break this time around? Is it headed for upside mayhem, or meltdown?

If the broad market has any say in the matter, a breakout to new highs is in the works…

The Broad Market's New Milestone

Yesterday, the Wilshire 5000 — an index that consists of all stocks trading in the United States — broke free of the bear and posted all-time highs. Few people watch the Wilshire — even though it’s one of the best broad market barometers out there. With little fanfare, it breaks free to blue skies…

As for the major indexes — they won’t stay stuck on pause forever. Something will have to give one way or another. As of yesterday, the Dow sits about 1.5% below its all-time high close of 14,164. The S&P has a little more work to do. It’s 3% below its all-time high close of 1,565.

If the Wilshire is any indication, the S&P and the Dow will follow to their respective highs in short order…

Best,

Greg Guenthner
for The Daily Reckoning

Greg Guenthner

Greg Guenthner, CMT, is the managing editor of The Rude Awakening. Greg is a member of the Market Technicians Association and holds the Chartered Market Technician designation.

Recent Articles

Not Yours To Give

David Crockett

One day in the House of Representatives a bill was taken up appropriating money for the benefit of a widow of a distinguished naval officer. Several beautiful speeches had been made in its support. Then Col. David Crockett arose, and spoke on the both nobility of charity and why it has absolutely no place within the government. Read on...


How the American Dream Can Make You 14-Times Your Money

Chris Mayer

Most U.S. citizens subscribe to an idea called the American dream - working hard on a level playing field so you can "get ahead" in life. But that's not what the original "American dream" was all about. As Chris Mayer explains, that term originally referred to a completely different, yet equally important goal. Read on...


The Idea of America

Bill Bonner

America is a country like no other. Comprised of people from all corners of the globe, America exists solely because people chose to become Americans. But what does that mean? And how does it influence the concepts of liberty and freedom Americans feel so entitled to? Bill Bonner explains...


The Rights Trap: Constricted By a Sense of Entitlement

Harry Browne

People tend to believe they are endowed with a few specific "rights" - property, liberty, happiness, etc. Unfortunately, as Harry Browne explains, rights only exist in theory. In practice they don’t accomplish much - no matter how much people may discuss them. Read on...


Tricked on the Fourth of July

Gary North

British North America was likely the freest society ever seen on earth, as long as you were not a slave of African descent. The Fourth of July isn't worth celebrating unless one wants to cheer an unnecessary revolution that ushered in more tyranny and taxation than existed before that revolution's "success".


Demographic Dilemma

Genevieve Lefranc

Our economy, consumer society, and retirement programs are all in jeopardy in the face of a looming demographic dilemma. Read on to learn about the dire situation with pensions and social security, and what you can do to protect yourself...