S&P 500 Perched Below Resistance
Thursday, December 9, 2010
Stock Market Commentary:
It was another relatively quiet day on Wall Street as the euro fell and jobless claims edged lower. In the future, to avoid any confusion, we are no longer going to use outside resources to label, instead focus on what has worked exceptionally well for us over 7 years, our own analysis. A popular outside source changed their label on Friday to Market in a confirmed rally, without a proper FTD emerging. This is bizarre and frankly plain irresponsible. From our standpoint, the rally that began on September 1, 2010 is still intact and we said that in our commentary on November 16, 2010 when the outside source said the rally ended –Full Story here. However, we changed it to be inline with them but that was clearly a mistake. If anyone has any questions about this, please feel free to fill out our contact form and we will be happy to address it in more detail.
Euro Sinks As Debt Woes Flare:
Overnight, the euro fell which put mild pressure on dollar denominated assets. The Labor Department said initial jobless claims fell to 421,000 last week which was less than the Street’s estimate of 425,000. Remember that lower jobless claims are a net positive for the ailing jobs market and they tend to tick lower this time of year due to increased hiring for the holiday season.
Market Action- Market In Confirmed Rally Week 15
It is encouraging to see the bulls show up and defend the 50 DMA lines for the major averages. The market remains in a confirmed rally until those levels are breached. The tech-heavy Nasdaq composite and small-cap Russell 2000 indexes continue to lead evidenced by their shallow correction and strong recovery. Put simply, stocks are strong. Trade accordingly.
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