EUphoria wanes as rescue package rides into the sunset. Dow returns 0.34%

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Rally Hits a Speedbump; Bulls Surrender As Momentum Slows

On the heels of the largest single-session gain in more than a year, stocks cooled off today as optimism over a $1 trillion European rescue package waned. Earlier in the session, the major market indexes climbed a slow and steady path higher, as the Street cheered an upbeat earnings forecast from Dow component Intel Corporation. In addition, optimists celebrated news that private-sector businesses accelerated hiring by 4.8% to a seasonally adjusted 3.89 million in March – the loftiest level since January 2009. Nevertheless, the bulls' endurance finally gave way in afternoon trading, with only the Nasdaq Composite (COMP) eking out a gain by the close.

After advancing 94 points earlier in the session, the Dow Jones Industrial Average (DJIA – 10,748.26) retreated in afternoon trading, settling on a deficit of 36.9 points, or 0.3%. Industrial issue Alcoa led the 23 declining blue chips into the red, while the Walt Disney Company paced the seven advancing equities. Rejecting the Dow's intraday surge was its 10-day moving average, which hasn't been toppled on a daily closing basis in more than a week.

The S&P 500 Index (SPX – 1,155.79) also gave up an early lead to finish 3.9 points, or 0.3%, lower. Like its blue-chip brethren, the SPX, too, encountered resistance at its 10-day trendline. Finally, the Nasdaq Composite (COMP – 2,375.31) once again fared the best of the major indexes, eking out a gain of 0.6 point, or 0.03%.

Nevertheless, the tech-rich index was also rejected by its descending 10-day moving average.

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