The market tone quickly changes this week, as both Boehner and Obama both seem to be making compromises toward a deal. The markets started strongly yesterday and continued to rally higher today. Financials and techs are leading the way. GS was under $120 on after Friday’s close; in 2 days, it climbed to $128! GOOG closed just above $700 on Friday; it attained an intraday high of $729.1 today. AMZN is once again at its all-time high level, rallying more than $10 in 2 days. AAPL is still relatively weak, but, did manage to gain $30 from Monday morning’s low. CRM is at an all-time high, topping $170. FFIV has completely reversed last week’s loss and has filled the gap from earnings in October.
Energy stocks are finally waking up. APA added +3.49% today. IOC popped more than +5%. NOV bounced 3.63%.
We started to lock in minor gains today:
The Dow was up +115.57 points; SPX added +16.43 points; Nadsaq gained +43.93 points:
SOXX (semiconductors) climbed +1.6%. FDN (internet) added +1.64%. XLF (financials) gained +1.47%. OIH (oil services) bounced +3.21%, while XLE (energy) went up +1.84%.
SPX added +16.43 to close at 1446.79. Its daily MAs and MACD turned up.
Nasdaq gained +43.93 points to close at 3054.53. Its daily MAs and MACD also went higher.
While Asian markets have been rallying higher and higher, US markets have been held hostage by the "fiscal cliff". Now, it seems real progress are starting to be made, stocks are rallying back. We discussed this weekend in my Market Forecast to watch SPX 1440 as a resistance. SPX closed above that level today. This is very impressive. We may start to see some light consolidation tomorrow, especially in the financials. However, industrials have a long way to run to catch up. I suspect that we’ll see a mixed market in the next couple of days, unless (or until) something substantial in the budget is actually agreed upon. SPX 1460 is the next resistance.
Good night and HappyTrading! ™