The back-and-forth action continued on Thursday with the bulls winning the current tug-of-war at support and resistance levels. The gains were once again limited but considering the hard stance now taken on the Fiscal Cliff by the Head Zombie, they were impressive.
The Dow gained 40 points, or 0.3%, to close at 13,074. The blue-chips reached a peak of 13,076 as the index made another run at the 50-day and 100-day moving averages (MA) which are a shade above 13,150. A close above this level would be bullish for next week or a hold of 13,000 on any weakness.
The S&P 500 added 4 points, or 0.3%, to settle at 1,413. The index closed above its 100-day MA of 1,411 and is just 4 points away from clearing its 50-day. We have mentioned a close above 1,425 would be bullish for a yearend rally and a 1% pop today gets us there. A close below 1,400 would be slightly bearish for next week although the dips are being bought.
The Nasdaq jumped 15 points, or 0.5%, to finish at 2,989. Tech rallied to a high of 2,996 but fell just short of clearing 3,000 again. The index did close above its 200-day MA by a point which was slightly bullish. The 50-day MA is at 3,009 and the 100-day MA is at 3,023. We have mentioned a close above 3,025 could lead to a run up to 3,100-3,150.
Futures are up and look like so: Dow (+50); S&P 500 (+4); Nasdaq (+12).
We have a big announcement this afternoon so let’s go check on our trades. We may add a new trade today as there is one or two on our Watch List we like. We will send out a New Trade Alert between 10:00am-11:00am if we like the entry prices. If not, we will see you at lunchtime.