Wednesday, November 10, 2010
Stock Market Commentary:
Stocks and commodities ended higher as the US dollar snapped a four day advance. Volume patterns remain healthy as the major averages are now in their 11th week of their ongoing rally. On average, market internals remain healthy evidenced by an upward sloping Advance/Decline line and the fact that new 52-week highs continue to easily outnumber new 52-week lows on both exchanges.
Economic Data Tops Estimates; Stocks End Flat:
The US dollar fell for the first time in five days after a slew of economic data topped estimates. The Labor Department said weekly jobless claims fell which suggested that the jobs market is improving. Elsewhere, the trade balance topped estimates which was a welcomed sign for both the market and the economy. Equally important, leading stocks remain healthy which is a very strong sign.
Market Action- Confirmed Rally, Week 11:
Heretofore, the action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong but the market action has been wide-and-loose which is not a healthy sign. The next level of support for the major averages is their September highs, then their respective 50-day moving average (DMA) lines. Trade accordingly.
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