by Sam Collins | September 10, 2013 2:21 am
Stocks rallied from the opening Monday — all on positive news outside the U.S. China reported a higher-than-expected number of exports in August, and Japan revised its Q2 GDP up to 0.9% from 0.6%.
But the news that propelled stocks to their best day in a month was the prospect of Russian intervention in the Syrian crisis. Syria’s response, however, was vague, saying only that it welcomed Russia’s proposal but did not indicate that it would comply.
And doubt increased that the Federal Reserve would entertain cutting their monthly stimulus plan. Fed Chairman Ben Bernanke has consistently referred to the employment numbers as a guideline for cuts in bond buying, and Friday’s poor jobs report doesn’t support cuts.
At Monday’s close, the Dow Jones Industrial Average was up 141 points to 15,063, the S&P 500 gained 17 points at 1,672, and the Nasdaq rose 46 points to 3,706. The NYSE traded 638 million shares and the Nasdaq crossed 366 million. On the Big Board, advancers beat decliners by 3.7-to-1, and on the Nasdaq, advancers were ahead by 2.2-to-1.
A 46-point gain enabled the Nasdaq to exceed a 12-year high and re-establish its bull market. Last week, it bounced smartly off of its 50-day moving average and issued a buy from its MACD indicator. Its support is technically firm.
And like the Nasdaq, the S&P 500 closed above its 50-day moving average, though by a hair. But it did flash a buy signal from its MACD and has confirmed its intermediate uptrend (short term, too) as long as it stays above its 50-day moving average.
Another broad-based index ploughed above its 50-day moving average, flashed a MACD buy, and looks like it could move to new highs. That is, of course, the NYSE Composite index, which is comprised of all stocks trading on the NYSE.
Conclusion: Three major indices confirmed their bullish stance Monday by closing above their respective 50-day moving averages. And one, the Nasdaq, hit a new 12-year closing high.
Some might say that volume and breadth were soft, and so this doesn’t count. And others might point to the Russian intervention in the Syrian crisis as the reason for a relief rally. But the conclusion is the same: The market acted very strong and confirmed its major trend — up.
I remarked one day last week that the stock market was acting remarkably well in the face of potentially horrible news. When a market moves ahead against the news, and especially when it hits new highs, the bull trend must be followed whether you or I like the background or not. The market has spoken and the trend is up. Don’t fight the tape.
To see a list of the companies reporting earnings today, click here.
For a list of this week’s economic reports due out, click here.
Source URL: http://investorplace.com/2013/09/daily-stock-market-news-market-confirms-its-uptrend-dont-fight-the-tape/
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