Nasdaq Composite ($COMPQ) makes new 52 wk hi
Today's rally takes the NASDAQ to a new 52 wk high ($2,242.22). While this is incredibly bullish for today and other Indices also showing aggressive strength, it should be recognized that the Dow ($DJI) and the S&P 500 ($SPX) have not made new highs today. Both Indices on Friday were near the lowest end of the channel that the market has been caught in for over a month. To expect them to cover the full range of that movement back to the resistance levels in one day, while not impossible, is not likely to happen.
So where does this leave us for the rest of the week? As I've already mentioned, the market is in a channel. It's very important to realize this is a low volume time of year. I don't want to predict where the market is going from here, but I can say this- don't get ahead of yourself or the market. Small moves are key right now. Make sure to stick to your plan and do not risk more than you can tolerate. I've personally been sitting on the sidelines waiting for the new year. When volume returns to these markets we will likely see a breakout accompany it so be aware. In the meantime if you're trying to take advantage of the small range between our support and resistance, just remember- always trade your plan.
Angie C
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