friday update

SHORT TERM: stocks stage broadbased rally on expiration day, DOW + 205
Overnight the Asian markets were all higher following the rally in the US yesterday. Europe came in about 1.50% as well, and closed there. US index futures, which started to rally after RIMM announced their earnings late yesterday, continued higher overnight. At 8:30 consumer spending for November was reported higher than expected, and the core PCE was reported lower than forecasted at +0.2%. Both positives. At the open the market gapped up significantly as the SPX hit 1481 by 10:30. Some sideways to lower activity until 12:00, but the SPX only pulled back a few points to 1476. After that a rally to new highs for the day at SPX 1485, where the market closed. For the day the SPX/DOW were +1.60% higher, and the NDX/NAZ added +2.00%. Bonds sold off in that volatile market down nearly 1 3/4 points. Crude was up $2.25, Gold gained $11.00, and the Euro was higher. Support for the SPX is now at 1484 and then 1462, with resistance at 1506 and then 1530. Short term momentum is overbought at +90%. During typical uptrend rallies it can hit 95%. All of the financial leaders rallied, and all but BIDU rallied in the tech leader sector. A good finish to a choppy week. Best to your weekend!
MEDIUM TERM: correction could have ended at SPX 1436
LONG TERM: bullish, it’s still a bull market

About tony caldaro

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