‘Fly-or-Die’ Jeopardy in Effect

The Dow was up 187 points Thursday, but the rally was noticeably lacking in exuberance. Most of it occurred on a gap-up opening in the early minutes of the session (see inset), rendering it valueless to traders who began the day looking for a way to board the next rally. Perhaps they’ll get their wish on Friday, only to regret it before day’s end. Whatever happens, a test of buyers’ mettle lies in the offing, since the broad averages are close enough to record highs that fly-or-die jeopardy will rule market psychology for the next few days. If the Dow Industrials come through with flying colors, keep 23517 in mind as a key resistance; anything above it, especially a close, would be bullish for the week ahead.