In Thursday’s pre-market report we noted that the market was ripe to rally, little did we know the Dow would soar nearly 300 points by the close. That’s just the way Wall Street works, when people want to step up and buy, they buy. Conversely, when people want to sell, they sell first and ask questions later. The 50 day moving average line is the next line in the sand to watch. On a relative basis, the Nasdaq and Nasdaq 100 continue to out-perform the other popular indices. The important levels of support to watch are: Russel 2000: 1335, then 1308, Dow Industrials: 20.4k, then 20.1k, S&P 500: 2322.25, then 2300, Nasdaq Composite: 5769.39, then 5669. Until those levels are breached on a closing basis, the bulls remain in control.
Thur & Fri Action:
Stocks jumped nicely on Thursday after Treasury Secretary Steven Mnuchin hinted a tax deal may be reached sooner than expected and the latest round of earnings were released. Mr. Mnuchin said the administration was close to “major tax reform” which came after changed his earlier goal of passing tax reform by August. The White House said it will unveil a plan “very soon” and that was enough to send stocks sharply higher. Stocks were quiet on Friday after legendary Hedge Fund manager, Paul Tudor Jones, said, “U.S. Stocks Should ‘Terrify’ Janet Yellen,” and made the case that stocks were very over-valued.
Market Outlook: Market Breaks 50 DMA Line
The market is pulling back after a very strong post-election rally. As always, keep your losses small and never argue with the tape. Want Adam To Be Your Personal Portfolio Consultant? You Don’t Have To Feel Alone In The Market, There Is A Better Way: Learn More