With the fiscal cliff behind it, the stock market has confirmed that the recovery attempt of December is still intact. January has begun with a strong rally taking the S&P 500 through a resistance line at 1,445. Its new objective is the Sept. 14 high of 1,475.
The last peak for the Dow was at 13,366. That, too, has been shattered by the recent rally, but the index should encounter considerable resistance at the September/October band of resistance at 13,400 to 13,600.
The Nasdaq has blasted north of 3,100, and the Oct.17 high of 3,112. Above that there is a band of resistance with a top at 3,197, its September high.
With the market overcoming some major resistance zones following the recent crisis, the pressure is on the bulls to support the current rally with higher volume and breadth. If they are able to rise to the challenge, last year’s highs could be overcome in the first two weeks of January, setting the stage for a bright new year.
Here are your top stocks to buy for January: