This morning, favorable manufacturing data, which showed signs of the economy recovering, prompted more buyers to jump into the markets. Stocks pushed the S&P 500 index (SPX) above 1000! Last night, in my weekly Market Forecast, I pointed out that mining stocks looked ready to break higher. Today, the mining stocks led the rally: FCX +8.03%, X +8.25%, RTP +6.41%, AA +7.14%. We also discussed the financials, which also showed a lot of strength today: WFC +5.48%, STT +4.1%, PRU +4.68%, MA +3.42%, and V +5.58%.
The Dow finished up +114.95 points; SPX added +15.15 points; Nasdaq gained +30.11 points:
Most sectors closed higher. XME (metals and mining) jumped +5.75% while GDX (gold miners) added +2.53%. Both USO (oil) and UNG (natural gas) recorded solid gains, +3.02% and +9.09%, respectively. OIH (oil services) bounced +4.35%. MOO (agriculture) added +3.32%. FXI (Chinese ADRs) advanced +4.06%.
SPX
SPX added +15.15 points to close at 1002.63, above 1000. Its daily MAs and MACD went higher.
Nasdaq
Nasdaq gained +30.11 points to close at 2008.61, above 2000. Its daily MAs and MACD also went up.
Even though the market looks toppy, it just keeps going higher. There is still a lot of money on the sideline, and, now it seems to be getting anxious. Every time the market stalls and locks in some profits, more new money jumps in. But, because there are people still waiting for a pullback, there is still more money on the sideline. As the market pushes higher, it draws some more of the sidelined money in. So far, the buying has been very orderly. We really have not seen any "frantic buying" yet! Both SPX and Nasdaq closed above crucial levels today (SPX 1000 and Nasdaq 2000). We'll have to see how the market handles these levels from here. If it does not make a quick jump to catch the daily upper BB, it may need to rest here for a bit and establish a new base before going higher again.
Good night and HappyTrading! ™
