After 3 days of selling, stocks bounced today as Germany confirmed its role to bail out other European countries. In addition, President Obama is expected reveal a $300 billion jobs package as early as Thursday evening. Tech stocks led the broad market bounce, bringing the market back to levels before the sharp fall last Friday after the unemployment report: AAPL +1.1%, AMZN +1.72%, APKT +8.37%, QCOM +4.53%, SNDK +5.81%.
Coal stocks got a big lift today as speculation of possible mergers surrounded WLT. WLT was up nearly +30% intraday and closed +21.32% higher. Other coal names also jumped: BTU +6.89%, CLF +8.32%, ACI +9.59%, PCX +14.15%.
The Dow finished up +275.56 points; SPX gained +33.38 points; Nasdaq jumped +75.11 points:
Most sectors were higher today. OIH (oil services) and XME (metals and mining) were both up more than +4%. SOXX (semiconductors) and FDN (internet) also showed a lot of strength, up +4.47% and +3.2%, respectively. XLF (financials) added +4.79%. Both GLD (gold) and SLV (silver) went down.
SPX gained +33.38 points to close at 1198.62, just under 1200. Its MACD went up.
Nasdaq jumped +75.11 points to close at 2548.94. It closed above its daily MAs and the MACD went higher.
This weekend, in my Market Forecast, we discussed the support on SPX between 1140 and 1160. On Tuesday morning, the market fell sharply and SPX tested 1140. Impressively, SPX managed to close above 1160 on Tuesday. With the positive news from Germany this morning, buyers came back in and drove stocks back to SPX 1200 and Nasdaq 2550. Going back to last week, these were the same levels that we looked at as support, before the unemployment report! Stocks have surged 60 points on SPX from yesterday morning's low, and many need a bit of time to breath! The market is testing SPX 1200 and Nasdaq 2550 again, but, this time as resistance. Tomorrow, we'll get the latest jobless claims numbers. This week is going by fast with Monday being a holiday. How this week closes out will be important. Let's see how the market does with the above-mentioned levels for the rest of this week.
Good night and HappyTrading! ™