FXstreet.com (San Francisco) - At the closing bell on Wall
Street, the Dow Jones Industrial Average ended up 20.4 points, or
0.2%, to 13002. For six days, the index has flirted with the 13000
milestone but failed to close above it until today, the first time
since May 2008, after U.S. consumer confidence rose to its highest
reading in a year, lifted by a better outlook on the job market.
The Standard & Poor's 500 Index managed to rise for a fourth
consecutive day, gaining 0.3% to 1,372.24, poised for the longest
rally in more than a month.
"Risk-sentiment has been positive in 2012 so far," says Fan Yang,
CMT, Chief Technical Analyst at FXTimes. Giving his technical
assessment of the S&P 500 index, "The ATR (average true range
of previous 14 candles), has slid to about 10," he observes. "A big
bearish candle with about twice the volatility could be a telling
sign of a correction from the 1376.50 area. In such an event, 1300
will be an important support, as it is coincident with a rising
trendline seen in the daily chart."
The strategist continues: "What if the risk-on does extend beyond
the 1st quarter of 2012? If the market pushes above 1376.50 and
beyond the 1400 psychological resistance, we are likely heading to
the next pivot at 1440.25 (the highest weekly pivot in 2008). Then,
if the market pushes above the 1500 psychological resistance, the
next key resistance would be the 2007-high at 1576.09."