Heading into today it was quiet, very quiet. From last night's SentimenTrader, "The S&P 500 has now formed one of the tightest 7-day closing ranges since 1928, with a high-to-low range of less than 0.35%."
That's no longer the case as of today.
Today the market ripped higher with tech big names leading the way: Cisco (CSCO), Google (GOOG), Amazon (AMZN), and Apple (AAPL), amongst others. The NASDAQ closed up 1% on heavy accumulation volume while the S&P 500 finished up .7%. S&P 500 Futures are currently trading at fresh 2012 highs after hours.
For investors searching for a reason behind the uptick, they will have little success. Not only are retail investors fleeing out of the market with billions per week, Zero Hedge put it best with his comments today,
All those who were patiently waiting for the S&P futures to close at new 2012 highs as the catalyst for Bernanke to announce QE3, can now exhale (if we end here): with S&P 500 2012 year-end earnings estimates the lowest they have been all year; with corporate revenues now negative quarter-over-quarter; and with US economic output sliding and GDP back under 2%; coupled with another step backward in housing; it was only logical that the S&P would close at fresh 2012 highs. And now, it is time for the NEW QE, LTRO 3 and more RRR and Interest Rate cuts from China and all shall be well.
Completely illogical? You bet, but fight the trend and be left in the dust. This market is going higher... FOR NOW.
Updated charts below. Mark will be summing up the week with tomorrow's recap so we will see you tomorrow!
And lastly here is an updated look at Facebook (FB) stock. Today the stock fell to fresh all-time lows as insiders were allowed to begin trading 271 million shares of stock. Full read at investors.com, but the key to watch for is exhausted selling leading to a bottom.