Dow closes above 13,000 for first time since ’08; S&P 500 well bid

Share | (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."

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Forex and Currencies

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