We covered most of Thursday’s action in our afternoon update and not much else happened after that as the market ended mixed. The Dow lagged its two counterparts by ending the day in negative territory. The S&P 500 and Nasdaq finished on higher ground.
This week has been “flat” but the fundamentals are still intact for a higher market. The talking heads have used caution all week and many of the “pros” have been telling you to expect a “pullback” but there has been strength.
The Financials have turned around and Tech remains hot. In fact, we wouldn’t be surprised to see a flurry of new deals by yearend as some businesses take advantage of the current economic environment before it improves. This could be another catalyst that carries the bulls past resistance.
On the other hand, the bears still have a few chips to play with but they are short-stacking against the heavy-hitting bulls right now. A closer look shows the bullish trend has continued this week.
The Dow fell 2 points yesterday to close at 11,370 but not before touching a high of 11,413 which is just above resistance at 11,400. Although the index has been down 3-out-of-4 days this week, the bulls are just 12 points away from turning in a positive report card for the blue-chips.
The S&P 500 added 5 points to settle at 1,233. The index has been up 3-out-of-4 days and is up 9 points for the week. We said on Wednesday we would like to see a close above 1,230 and we got it yesterday which should pave the way for a test to 1,250.
The Nasdaq has showed up for work every day and advanced over 7 points to finish at 2,616. We have been targeting the 2,600-2,700 area for a few weeks but more specifically – 2,661 – as confirmation on a possible run at 3,000 in 2011. For the week, the index is up 25 points, or nearly 1%.
This is what the numbers are heading into today’s action.
Futures are showing a strong start after more progress on the tax cut bill was made last night but we all know it’s not how you start…it’s how you finish.
Dow futures are higher by 16 points; S&P 500 futures are up 2 points; Nasdaq 100 futures are showing a 4 point pop. If the bulls can rally and hold, and we think they will, then we could be looking at our second set of higher targets for the indexes.
We had an incredible day as far as our current trades on Thursday and many of them once again showed solid gains. We have two current trades that are approaching 200% returns and a few others that are near triple-digit status. Subscribers, check for the updates inside our Members Area.]]>