A very nice day for bulls as stocks pull back in light volume taking a breather from 6 days worth of gains. Many leading stocks pulled back in light volume and displayed healthy action. This uptrend continues to be on track and appears to be gearing up for more gains.
Part of the story today was the dollar moving higher after a 3 day slump. This sent metals lower on the day, but not the panic selling we saw earlier. It is possible the dollar index moves back to its 200dma as it is a likely area of major resistance. The $871 billion dollar spending bill on Obamacare has yet to scare away dollar bulls. In this case, the chart certainly tells a tale the apparent fundamental story has yet to. Boil it down to supply and demand and at the moment demand is outpacing supply for a variety of reasons. We simply do not care the reasoning here on the dollar because the chart says the index has higher ground to move to. But, look for resistance around $80.
Like it or not boring sessions are needed for this market if this uptrend is likely to continue. Many Wall Street folks are on vacation and will be returning next week. Building a nice handle here for a few days will certainly allow the market enough breathing room to move higher into January. Much like 2004 we could see January be a positive one, but might also market a top much like January 2004. Corrections are bound to happen, it is a matter of when and right now the signs are simply not there.
We continue to have strong gains from the stocks we hold and are looking at a few more to break higher as well. There isn’t much time left for our holiday special, take advantage of this favorable offering. Click here for more details.
Be well
