The “fluff” targets we gave you back in early December were: Dow 13,777; S&P (500) 1,492; Nasdaq 3,150; Russell (2000) 885. We said there could be some extra fluff but that we may need to start preparing for a pullback once these levels were triggered. We will be checking the charts over the weekend to see if there is further upside or if the market has peaked but we don’t want to ruin the party right now.
Thursday’s rally just about got us there and it nearly felt like a “blow-off” top but there are a few levels of resistance still sticking that the bulls need to clear on the close.
The Dow advanced 85 points, or 0.6%, to finish at 13,596. The index did clear resistance at 13,600 after reaching a peak of 13,633 but finished just below this level into the close. Our fluff target is 2% away but the bulls will need to clear this level today to make us feel good about next week. Support is still at 13,350 but is moving up to the 13,400-13,450 area.
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