Stocks posted impressive gains this week with the Dow Jones Industrial Average (chart) closing up 3.6% hitting a five month high. The S&P 500 (chart) also finished the week up 3.7%, the Nasdaq (chart) +2.5% and the Russell 2000 (chart) +3.6%. Albeit, these gains did occur on relatively light volume.
Once again positive U.S. economic news helped fuel this week’s rally with encouraging news on the housing front where builders broke ground on over 600,000 new homes and building permits increase at a 5.7% rate. Also, on the jobs front, applications for unemployment benefits fell by 4000. Even Europe had some positive news with German business and consumer confidence rising unexpectedly in December and Spain also had a successful debt auction.
Once again the S&P 500 (chart) is at the upper end of its protracted trading range and appears to be on the cusp of breaking out. With four trading days left in the year, let’s see if the bulls get their long awaited technical breakout. Good luck to all.
Have a wonderful Holiday weekend 🙂