WALL STREET : DJIA Rises On Slew of Corporate Earnings

SPX, COMP Put Round-Number Resistance in the Rearview Mirror
Stocks rocketed higher right out of the gate this morning, as a slew of solid earnings reports trumped overseas drama in both Europe and the Middle East. Dominating the earnings stage were Micron Technology (MU) and Red Hat (RHT), which blazed the trail into the black after reporting stronger-than-anticipated quarterly figures. Further fueling the bulls' early fire was news that first-time jobless claims fell last week, overshadowing reports of a surprise drop in durable-goods orders last month. Against this backdrop, investors had no trouble donning rose-colored glasses, essentially shrugging off intensified fighting in oil-saturated Libya and Portugal's seemingly imminent bailout. By the close, the Dow Jones Industrial Average (DJIA) left the 12,000 level in the dust, while both the S&P 500 Index (SPX) and Nasdaq Composite (COMP) put round-number resistance in the rearview mirror.

The Dow Jones Industrial Average (DJIA – 12,170.56) blazed a steady path higher today, notching a gain of 84.5 points, or 0.7%, to end atop the 12,100 level for the first time since before the March 11 earthquake in Japan. Only three of the Dow's 30 components bucked the trend, with Bank of America (BAC) and Cisco Systems (CSCO) each giving up nearly 1.3% by the close. Leading the bullish majority, meanwhile, were Hewlett-Packard (HPQ) and Home Depot (HD), which both tacked on more than 2%.

The S&P 500 Index (SPX – 1,309.66) also picked up steam as the session progressed, finishing with a gain of 12.1 points, or 0.9%. What's more, the broad-market barometer conquered the round-number 1,300 level for just the second time since March 9, and surmounted both its 10-day and 20-day moving averages for the first time in three weeks. In similar fashion, the Nasdaq Composite (COMP – 2,736.42) fared the best of the three, advancing 38.1 points, or 1.4%, to end atop its own 10-day and 20-day trendlines for the second time since Feb. 18. Even more noteworthy, perhaps, the tech-rich COMP toppled the 2,700 level -- a feat not accomplished since March 9.

TECHNICAL ANALYSIS
Dow Jones Industrial Average
The Dow closed higher on Thursday as it extends the rally off last week's low. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If the Dow extends the rally off last week's low, this month's high crossing at 12,283 is the next upside target. Closes below the 10-day moving average crossing at 11,944 are needed to confirm that a short-term low has been posted.

First resistance is today's high crossing at 12,184.

Second resistance is this month's high crossing at 12,283.

First support is the 20-day moving average crossing at 12,042.

Second support is the 10-day moving average crossing at 11,944.

HAPPY TRADING & GOODLUCK2ALL