By Nicholas Santiago on March 15th, 2010 12:52pm Eastern Time
Today the major indexes are under some slight pressure as the U.S. Dollar index is higher by 0.50 cents to 80.34. Tomorrow is the highly anticipated FOMC meeting; the Federal Reserve Bank is expected to leave the Fed funds rate unchanged at zero percent. Currently the SPDR S&P 500 ETF (NYSE:SPY) is at good resistance levels on the daily chart at 115.00 and appears short term overbought. Considering these factors, it is not surprising to see a small pullback in the markets today. However, there is one stand out stock today that is trading higher, and it is Wal-Mart Stores Inc (NYSE:WMT).
Today Wal-Mart Stores has moved to a new high on the daily chart trading higher by 1.46 to 55.35. When a stock makes this kind of a move higher in a down market this must be viewed as good relative strength compared to the overall market. Stocks that make this type of move especially in a down tape must be respected. Companies such as Wal Mart are very defensive and often trade higher before economic down turns or market corrections. This is a possible reason for today's sharp move higher.
While Wal-Mart Stores is at a new high for 2010 it does have strong resistance levels nearby. There should be daily chart resistance at 57.00 and more at the 60.00 level in the near term. Until Wal-Mart reverses on strong volume the stock must be given the upside bias into these levels.
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