What’s Bolstering Hope…
Traders are thankful for the good
economic news that was released today. U.S. consumer spending and durable goods
orders rose in October while initial jobless claims fell to their lowest in 21
months last week, the government said on Wednesday. These reports that should
bolster hopes for the economic recovery. Nine of the top 10 most-active stocks on the
Nasdaq were in positive territory, and the Dow Jones industrial average had
touched its highest point in three months in early trading.
The S&P 500 rose 23.20, or 2.6%, to 937.51 as of 12:04 p.m.
ET. The Dow Jones Industrial
Average advanced 233.34, or 2.7%, to 8908.76. The Nasdaq Composite Index
climbed 39.55, or 2.7%, to 1484.07. The S&P
500 has added 5.8% this month and 20% from a five-year low on Oct. 9. Its last consecutive monthly
gains were in November and December 2001.
The S&P 500 index
(
$SPX.X |
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PowerRating) is continuing to hang in here at the
highs of the day. Right now the 2.0 Vol Band level is being hit (936) The
initial resistance is at 937. This will be a three-month high. This is also
around the 84.1% retracement level on the daily chart. A break above the 927
level could rally to the area of congestion at 948 to 950. If we pull back, look
for initial support at 930 followed by a subsequent secondary support at 924.
The following sector indices are experiencing significant strength:
Semiconductor
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$SOX.X |
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PowerRating), Trucking, Broadcasting, Biotech [$BTK.X| $BTK.X]
and Wireless Comm.
The weaker sectors are: Gold & Silver
(
$XAU.X |
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PowerRating),
Adv Medical Dev, DJ Pipelines, Natural Gas [$XNG.$XNG.X] and DJ Food.
USA Interactive
(
USAI |
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PowerRating) is beginning
to rally from a pull back from the high. Today volume is increasing. USAI has a
TradingMarkets.com RS3 rating of 80.
Volume is expected to taper off later in the
session as investors and traders leave early for the Thanksgiving holiday on
Thursday. Also the Treasuries have a shortened trading session. Stock markets
will be closed on Thursday and shut early on Friday.
Nasdaq Market Breadth
Adv: 2206 UpVol: 8420609
Dec: 935 DnVol: 828725
Net: +1271 Net: +7591884
NYSE Market Breadth
Adv: 2416 UpVol: 68437817
Dec: 747 DnVol: 11847860
Net: +1669 Net: +56589957