The first day of December has been pretty good for the bulls, historically, and yesterday was no different as the market surged 2% on Wednesday. We knew this on Tuesday but our thesis for a higher market was a better-than-expected jobs report and we got it. The big numbers will come on Friday concerning unemployment but we have been some signs that there are jobs slowly coming back to the market.
The market had a big open as the Dow easily hit a triple-digit gain right off the bat but strength held all day. After our midday update, the Federal Reserve’s latest Beige Book showed the economy was continuing to improve at a modest pace.
There was also a mad rumor flying around that the U.S. may be willing to participate in a rescue fund for Europe. Although the rumor was quickly shot down, the incredible amount of good news we got from abroad and here in the States was plenty as the major indexes held their gains AND broke key resistance levels.
The Dow finished the day with a gain of 250 points, or 2.3%, to settle at 11,255. We have been harping that 11,200 was the first wave of resistance and you could see all morning the fight to bust through. By noon, the Dow looked poised to break short-term resistance at 11,200 for the first time in two weeks and finally did. We are still looking for a run to 11,600-11,700 over the near-term.
The S&P 500 soared over 25 points, or 2.2%, to close at 1,206. The 1,200 level has been hard to crack but the bulls did and now have their sites on the 1,225-1,250 region.
Tech rebounded in a big way as the Nasdaq jumped over 50 points, or 2.1%, to finish at 2,549. We still think the index can trade up to 2,600-2,700 by Christmas.
Futures are pointing towards a slightly higher open as the bulls try to go for two-in-a row today. We would love to see another big push higher but if the bulls can just hold the recent breakout above resistance, we’ll be happy.
As we head to press, Dow futures are up 4 points to 11,237 while the S&P futures are higher by 1 to 1205. The Nasdaq 100 futures are showing an advance of 4 points to 2,162.
We have a lot to cover with our current trades and be on the lookout for Trade Alerts this morning. Subscribers, check the Members Area for the updates.]]>