Wall St Bulls Take A Detour From Dovish Feds

Sentimental Mix; The S&P 500 Index and Nasdaq Composite each found a new annual high today
Wall Street closed with a split decision on Tuesday as the Dow inched away from the 11000 level despite the latest dovish comments from the Federal Reserve, but the S&P 500 and Nasdaq Composite closed at yet another new 19-month high.

On the heels of yesterday's jobs-related rally, stocks started the day on a decidedly negative note. A deadly explosion at a West Virginia coal mine operated by Massey Energy was the top story of the morning, with shares of the commodity concern dropping dramatically lower as a result. However, the broader market elbowed its way into positive territory in afternoon trading, thanks to a little reassurance from the Federal Open Market Committee (FOMC). In the minutes from its latest meeting, the policy-setting group refused to define the "extended period of time" for which it expects interest rates to remain low.

Instead, the FOMC asserted that its accommodative policy is "explicitly contingent on the evolution of the economy rather than on the passage of any fixed amount of calendar time," with several members warning of the dangers of a premature rate hike. However, the net result of today's see-saw session was a mixed finish for the major market indexes.

After a brief trip into the black, the Dow Jones Industrial Average (DJIA – 10,969.99) settled on a modest decline of 3.6 points, or 0.03%. Exactly half of the Dow's 30 components ended higher, led by Alcoa and Bank of America. The 14 laggards were ushered lower by Travelers Companies, while AT&T shares finished flat.

The blue-chip barometer remains perched comfortably above its 10-day moving average.

The S&P 500 Index (SPX – 1,189.44), meanwhile, bounced back from early weakness to notch a slim gain of 2 points, or 0.2%. Earlier, the SPX tagged a new annual high of 1,191.80 -- its best price since Sept. 29, 2008. (To find out what the next major technical hurdle will be for the SPX, stay tune to ZLBT.

Finally, the Nasdaq Composite (COMP – 2,436.81) tacked on 7.3 points, or 0.3%, by the close. The COMP found a fresh high of its own today, tapping an intraday peak of 2,443.50 before settling at its highest close since Aug. 15, 2008.

Levels to Watch in Trading:
Dow Jones Industrial Average (DJIA – 10,969.99) - support at 9,000; resistance at 11,000
S&P 500 Index (SPX – 1,189.44) - support at 950; resistance at 1,300
Nasdaq Composite (COMP – 2,436.81) - support at 1,900; resistance at 2,600