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  • Wednesday, April 20, 2011 End-of-Day Update  0 comments
    Apr 21, 2011 7:07 AM | about stocks: DIA, SPY, SH, PSQ, RWM, UUP, EUO, AAPL, FDO, CSCO, CCJ, TLT, TIP, VXX

    The stock market buoyant higher today on economic and earnings news that investors interpreted as positive. However, most of the day's gains occurred at the market open. The DJIA and S&P 500 rose at least 1.4% with the Nasdaq Composite rising 2.1% with strong participation from investors. Market breadth confirmed the strong action as 4.9 stocks rose for every one that declined on the NYSE. New highs outpaced new lows 12 to 1 as well on the NYSE. Based on the action today we are once again raising the support/resistance levels on the DJIA, S&P 500, and Nasdaq Composite (see below). The S&P 500 and Nasdaq Composite reclaimed their 50-day moving averages. Investors are feeling that stocks have no where to go except up right now based on market sentiment. How much higher stocks can rally is unknown with complacency so high and volatility so low. Earnings have been ok so far but not greatly surprising so far. Based on the current stock market direction if you need to own stocks nimble at them slowly. A longer and sharper correction for stocks would not surprise us. The Nasdaq Composite gapped up today. These type of gap ups in the major indexes usually get filled rather quickly after happening. If this does occur then the Nasdaq Composite should test the 2,760s area. Protect profits and cut losses quickly if a trade turns against you.

    No positions in securities mentioned.

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