The bulls got a rare Monday win which was good to see as they try to expand on the 3-week run. The major indexes pushed the next levels of resistance but they didn’t have enough firepower although Tech looked better. The Financial stocks were slightly weak but held near-term support following last week’s surge.
These were some of the clues we were looking for yesterday to see if the current mini-rally has enough gas to power the market higher and out of its trading range. Two-out-of-3 wasn’t bad but it didn’t give us the green light to load up on new trades.
The Dow gained 15 points, or 0.1%, to settle at 13,169. The blue-chips traded to a high of 13,195 and we have mentioned a close above 11,200 would be very bullish for a run to 13,350. Support is back at 13,000.
The S&P added a half-point, or 0.03%, to finish at 1,418.55. The index kissed 1,421.64 and we have been waiting for a close above 1,425 to confirm the next leg higher. Support is at 1,410-1,400.
The Nasdaq advanced 9 points, or 0.3%, to end at 2,987. Tech slipped to a low of 2,971 at the open before bouncing back to push 2,997. A close above 3,000 would be cool but 3,025 will be the breeze to go higher. A close below 2,975 will get the bears excited again.
Wall Street held up well to start the week despite the Head Zombie saying he “won’t compromise” on tax hikes for the rich and that he will fight to extend tax cuts for the middle-class. He went on to say that it was a “hit” we can’t afford to take in reference to the Fiscal Cliff. We all know the President knows a lot about “hits” from his college days but the market ignored the warning shot because it is hoping for a deal by yearend.
Futures are showing a slightly higher start and look like this: Dow (+28); S&P 500 (+4); Nasdaq 100 (+10).
We have added a half-dozen possible new trades to our Watch List and there could be another new trade this morning if we see something we like. Subscribers, check the Members Area for the updates and stay locked-and-loaded.