My assumptions from last week's analysis were confirmed today as the S&P 500 surged through 1130 and closed above 1140. Tech stocks were the big leaders so really the highlight index today is the NASDAQ Composite.
Technically we should move much higher from here. 1130 was a big psychological resistance area and the move today with a strong close puts bulls in the driver seat. More sidelined money should come into play over the next few weeks to help fuel this rally further.
While many investors felt that the rally would fail at 1130 due to the strong resistance and the simple fact that the rally was already extended, they missed a key fact which was overall strength. The last five sessions heading into today the market creeped higher and did not sell off. This allowed technical indicators that were overbought to mellow and return to a more normal state.
For me personally I was already over 50% vested heading into last week and after further buying towards the end of last week and today I am now 100% long. I am still keeping my stops tight though and am ready to take profits off the table if the signals support such action.
Tonight I have a handful more of great stock charts that I feel deserve a good mention. If you want a better idea of more stocks I am closely watching or playing right now then check out my recent post, 25 Great Stocks to Watch After Today’s Huge Rally.
S&P 500 (SPX) - A beautiful move through 1130 resistance a nice close near session highs means the market is not yet ready for a rest. 1170 next most obvious resistance.
Apple (AAPL) - Resistance at previous highs was not enough to stop tech leader Apple from slowing down. The stock today on strong volume closed at fresh all-time highs. Stocks like this and AMZN, BIDU, NFLX, will perform very well in market rallies simply because they are household names and overall market leaders.
Saleforce.com (CRM) - After taking a rest this software leader has jumped back to fresh highs on good volume. Buy area was $114.50 back in August and today at $120 - $122. Stops can be as tight as $118.
Baidu.com (BIDU) - Nice break today and close at fresh all-time highs. Volume was strong. Buy point was at $87.50. Stops at $86 for now. Previous buypoint at $81.
Deere (DE) - Agriculture stocks are hot (great ETF to track this trend is MOO). After the most recent bull flag break through $69.10 this stock has continued to make higher ground on good volume.
Wynn Resorts (WYNN) - Nice move today through my buypoint of $94.10. Stops at $91.30 for now.
Lubrizol (LZ) - Nice bullish engulfment today for this play on chemicals should lead to even higher prices in the coming weeks. Original buypoint was $96.20.
Blackrock (BLK) - This stock took almost a 50% haircut from peeking back in january above $240. The recent HEAVY accumulation cannot go unoticed though. This stock broke out of a several month base and could on its way much higher from here. Technical buypoints were $163.60 and today at $165.90 but I will keep an eye out for the next one.
Google (GOOG) - Big day for this once leader and the break back above $109 today was a technical buypoint.
The market is looking good but that doesn't mean to get reckless. Stick to a strategy, stay disciplined, and stay frosty out there!