Morning Update: 12/18/2012

Indices Close Strong

The stock market indices started the week off with a bang. They ran up sharply from the get-go, and within minutes they hit their overhead resistance and backed off. The Nasdaq 100 came back much sharper because Apple Inc. (AAPL) was down on the session early on and then reversed. That helped the indices in a beautiful, 5-wave rally intraday, closing at the highs for the day going away on a big spike in the afternoon, particularly in the last half hour when they exploded.

Net on the day, the Dow was up 102.83 at 13,237.38. The S&P 500 was up 16.92 at 1439.50. The Nasdaq 100 was up 36.17 at 2654.26.

Advance-declines were 2 to 1 positive on theNew York Stock Exchange, and 2 1/2 to 1 positive on Nasdaq. Up/down volume was 5 to 1 positive on New York, with total volume of 625 million shares. Nasdaq traded over 1.85 billion, which is big volume, and had a 2 to 1 positive volume ratio.

Stepping back and reviewing the hourly chart patterns, the indices were up sharply at the get-go, pulled back sharply but held. They ran very hard midday, only to pull back quite sharply in the afternoon, held support, and then exploded into the close as short covering took over. Although the indices closed near 1431 S&P 500 and 2664-5 zone NDX, both of which are resistance levels, it sure looks positive for more upside going forward as the S&P 500 held its major trend line over the last few weeks.

We’ll see how it goes on tomorrow.

Good Trading!






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