12:10pm (EST)
The bulls are doing their best to erase the memory of Wednesday’s debacle as they make a push to close above resistance. Today is supposedly a “lucky day” as the number 11 is considered to bring good fortune. The date of 11-11-11 has made the bulls a weekly winner if current levels hold and maybe yesterday’s close of 112 on the Dow was an omen.
We have been on the money as far as calling this week’s market action although we didn’t quite expect the tenacity of Wednesday’s selloff. After a quick test to our upper end resistance targets to begin the week, we said the market would pull back a little to test “new support” which was “old resistance” before the bulls pushed the next leg higher.
The bears also made their point that there are still around but they are chasing the bulls as the uptrend is still intact. Today’s pop has pushed the market back towards our upper level targets.
The Dow is currently up 268 points to 12,162 while the S&P is making a move of 25 points to 1,265. The Nasdaq is higher by 53 points to 2,678.
The key levels to watch into the close will be – Dow 11,983; S&P 1,253; and Nasdaq 2,686. These are the breakeven points for the week and will decide the winner. For those of you who followed our advice on Wednesday to stay long and strong, good job.
We have a lot to cover in our Members Area including a NEW TRADE so we have to roll.
Before we go, here is a shout out to all the people who have protected us over the years…Happy Veteran’s Day! We will be back Sunday with our Weekly Wrap so until then, have a great weekend, everyone!