1:15pm (EST)
There were a lot of traders who took Friday off because a) it was a half day and b) Wednesday’s action was brutal and there weren’t a lot of traders who wanted to be long over the weekend.
Well, we worked and we added to our bullish positions even though support levels were being stretched. We mentioned a few weeks ago if the market had trouble at prior resistance there could be a pullback but we weren’t sure how severe it could be. We also mentioned this morning that sometimes headline news trumps technical analysis but the charts do a pretty good job of keeping your emotions in check.
We knew at some point there would be some good news from across the pond but to be honest, we have tried to remain bullish because the economic picture here at home has been improving. Although we are in a global trading environment, the U.S. seems to be the safest place to park assets for many investors and these 3 catalysts, along, with the charts, have told us the bulls still have a lot of fight left in them.
We also reminded you that the selling pressure reminded us a lot of early August when there was extreme panic after the U.S. lost its triple-A credit rating. We knew from that point on volatility would be here to stay and we said it would be one of the best times ever to trade the market.
Today’s bounce comes on renewed hopes that Europe continues to think outside the box on ways of solving its sovereign debt crisis while here at home, record Black Friday sales have powered the major indexes higher by 3%, on average.
The Dow is up 305 points or 2.7%, and is at 11,537. The index has traded to a high of 11,563 and we would like to see a close above 11,600.
The S&P 500 is zooming 35 points, or 3.2%, and is at 1,195. Prior support at 1,200 is resistance today so the bulls will be pushing hard to take out this level after pushing 1,197 earlier in the session.
The Nasdaq is soaring 85 points, or 3.4%, to 2,526. The break back above 2,500 is golden and a close above 2,525 would be sweet for today.
We will be back in the morning with a full update but for now we have to cut it short. We have a lot to cover in our Members Area and the 4 New Trades from Friday have gotten off to juicy starts. Subscribers, check for the updates.