S&P 500 Hits Pre-Lehman Level
Tuesday, December 21, 2010
Stock Market Commentary:
The major US averages edged higher after after equity markets rose in Europe and Asia. Keep in mind, that this is a shortened holiday week as all US markets will be closed on Friday in observance of Christmas. Market internals remain healthy, evidenced by an advancing advance/decline line and an expanding number of stocks reaching new 52-week highs.
Fed Extends Swap Lines; Economic Data Positive
The Federal Reserve extended its swap lines with the European Central Bank, and the Central banks of: Japan, Switzerland, Canada, and the U.K to help ease dollar liquidity issues. The latest reading on US retail sales was positive evidenced by the weekly measure of comparable store sales at major retail chains, published by the International Council of Shopping Centers and Goldman Sachs (GS). The ICSC/Goldman Sachs index rose +1.7% during the third shopping week of December. The year-on-year pace also rose more than one percentage point to +4.2%, which was the strongest reading since Q2.
Market Action- Market In Confirmed Rally Week 17
It is encouraging to see the bulls show up in November 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. If you are looking for specific high ranked ideas, please contact us for more information.
