We have been discussing the important resistance level of 1848 to 1850 on the S&P 500 for the last week or so, and the bulls took a run at and were able to penetrate that level in today’s session. Stocks rocketed to early gains with the S&P touching 1858 before settling back to close slightly below that resistance level (the bears could celebrate the fact that the bulls were not able to close at new highs). Other than continued global macro disruption, on the domestic front, traders are waiting on Fed Chair Yellen’s testimony before the Senate this week (one of the many snowstorms had cancelled her appearance previously).
By the close, the Dow Jones Industrial Average was up 105 points to finish the day at 16,209. The S&P 500 was up 11 to close at 1847. Gold was up $14 to trade at $1337, while oil was up $.38 to trade at $102.57 per barrel WTI. The bulls were able to take the high ground during today’s session, but were not able to hold onto it at the close.
On Friday we’ll get the revised 4th quarter GDP number, but before that we’ll get consumer confidence numbers on Tuesday, new home sales on Wednesday, and Ms. Yellen’s testimony and weekly jobless claims on Thursday. We’ll let you know how the week plays out. Will the bulls convincingly put the 1848 level behind us, or will the bears step up and play some defense? Should be an interesting week.
Have a nice evening everyone.