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A holiday-shortened week and light Thanksgiving volume didn’t stop the market last week from making some progress as the NAZ pushed further beyond 4000 to cap off a 6-session win streak while the RUT, S&P 500 and DJIA each reached new all-time highs.

As we head into a new week of trading, it’s time once again to take a look at the indexes and the key levels they’re dealing with. This will impact how individual names move, so it’s where every new trading week begins.

NAZ – The NAZ has posted 6 straight advances, leaving it well past 4000.  Perhaps more importantly, it has some 148 points down to the last minor pullback low, giving it lots of room to create another higher low on any dip from here.

Why I Use TC2000

 

SP500 – The S&P is holding steady just above 1800, but the pace has slowed a bit and now a rising wedge is starting to emerge on the daily chart.  That isn’t necessarily bad news, as an upside resolution would negate this, but it’s something to keep an eye on.  1775 has proven to be a key level in recent weeks as both resistance and support, making it the first downside level to watch if some selling kicks in.

Why I Use TC2000

 

RUT – The RUT hesitated around 1123 but then accelerated some last week to create some separation.  Friday’s finish was poor, but it’s been a quick run since 1096 and a little rest may be in order.

Why I Use TC2000

 

DJIA – The DJIA is still firmly within its uptrend channel here.  On Friday, it got within 26 points of 16200, then backed off into the close.  There’s still no negative change of character here though, so the channel remains in effect until proven otherwise.  Watch the channel lines around 16220 and 15950, both of which rise slightly each day.

Why I Use TC2000

 

Take a trial of the Stock Pick Service to get my trades.

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Jeff White

Follow @TheStockBandit

A 3-day pullback to kick off last week left bulls itching to put cash to work, and that’s just what they did.  By the close on Friday, the RUT, S&P 500 and DJIA had each broken out to new all-time highs.  That keeps the pressure on bears as we head into a holiday-shortened week of trading (which frequently has a bullish slant), and the question remains whether this is the year-end melt-up or simply the start of one.

As we head into a new week of trading, it’s time once again to take a look at the indexes and the key levels they’re dealing with. This will impact how individual names move, so it’s where every new trading week begins.

NAZ – The NAZ gave up 3966 last week, the prior breakout zone, then quickly reclaimed it to finish just 4 points off its multi-year high.  Following several weeks of basing activity, this index may be poised for another big run despite the lack of profit-taking we’ve seen since early October.

Why I Use TC2000

 

SP500 – The S&P has added 9.6% since the low on October 9th, making this one very impressive run for the blue chips.  We’ve recently seen a little rest, but virtually no profit-taking, and that leaves this index with a bit of a stretched appearance.  However, last week we saw 1775 validated via a pullback test, followed by the creation of a new all-time high.  The trend is up, it’s just wise to trail stops along the way when the air starts to get thinner.

Why I Use TC2000

 

RUT – The RUT had led the way higher for the past year of this rally, but in recent weeks it has stalled out.  There was a potential lower high in play as recently as last Monday (1119 vs. 1123), but that scenario was eliminated with the creation of a new all-time high on Friday as the small caps pushed through resistance.  This breakout is for now only incremental, but it’s a step in the right direction for the bulls who seem to have no plans as of yet to leave the party.

Why I Use TC2000

 

DJIA – The DJIA just keeps grinding higher since its false breakdown on October 9th, adding some 1345 points since that day of just over 6 weeks ago.  It just painted a new all-time high with Friday’s advance, keeping it firmly within its uptrend channel.  Until that changes, there’s no reason to expect anything different but brief, shallow dips on occasion with otherwise steady strength.  A shake-up will eventually come, but technically there’s no indication it’s imminent.

Why I Use TC2000

 

Take a trial of the Stock Pick Service to get my trades.

Trade Like a Bandit!

Jeff White

Follow @TheStockBandit