WALL STREET >>> DJIA Takes Back 12,700

Bulls Charge : Dow Soars 1.2% as Greek Plan, Earnings Fuel Optimism

Stocks blazed a steady path into the black today, as Wall Street celebrated encouraging earnings and economic reports, and some debt-related headway across the pond. Specifically, European Union (EU) leaders detailed plans to prevent the contagion of Greek debt, which helped overshadow the lingering debt-ceiling gridlock on Capitol Hill. Meanwhile, Morgan Stanley (MS) led the earnings festivities, as investors applauded the financial concern's narrower-than-expected quarterly loss. Furthermore, the Philly Fed index's stronger-than-anticipated rebound, as well as upbeat data from the Conference Board, helped keep a jump in weekly jobless claims on the proverbial backburner. Against this bullish backdrop, the Dow Jones Industrial Average (DJIA) ended at its loftiest settlement price since May 10.

The Dow Jones Industrial Average (DJIA – 12,724.41) finished near a session high, advancing 152.5 points, or 1.2%, to end atop the 12,700 level for the first time in two weeks. Only Intel Corp. (INTC) bucked the trend higher, shedding 0.8%, while Bank of America (BAC) paced the advancers with a 3.9% gain.

In similar fashion, the S&P 500 Index (SPX – 1,343.80) rallied almost 18 points, or 1.4%, conquering the 1,340 level for the first time since July 8. Finally, the Nasdaq Composite (COMP – 2,834.43) pared its surplus to 20.2 points, or 0.7%, after earlier soaring as high as 2,847.41.

TECHNICAL ANALYSIS
Dow Jones Industrial Average

The Dow closed sharply higher on Thursday as it extends this week's rally. The high-range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are diverging and are turning bullish signaling that sideways to higher prices are possible near-term. Closes below the 20-day moving average crossing at 12,434 would confirm that short-term top has been posted. If the Dow extends the rally off June's low, May's high crossing at 12,876 is the next upside target.

First resistance is the 87% retracement level of the May-June decline crossing at 12,752.

Second resistance is May's high crossing at 12,876.

First support is the 20-day moving average crossing at 12,434.

Second support is Monday's low crossing at 12,296.

Crude Closing In On $100

Crude futures extended their winning streak to three straight sessions today, and even made a brief foray north of $100 for the first time in more than a month. Progress on the Greek debt situation bolstered hopes for improving demand, while the International Energy Agency's (IEA) decision against a second release of oil reserves also boosted black gold. Against this backdrop, September-dated crude oil futures tacked on 73 cents, or 0.7%, to end at $99.13 per barrel.

HAPPY TRADING & GOODLUCK2ALL