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Saturday, January 19, 2013

WALL STREET : Bulls Win a Third Straight Week

Dow, S&P 500 end at five-year highs on early earnings beats

"In a relatively uneventful day, the markets caught their breath after yesterday's strong rally," summarized a Senior Equity Analyst. The Dow Jones Industrial Average (DJIA) broke higher in the afternoon after a sluggish start, closing the session at its highest point since December 2007.

"Meanwhile, the CBOE Market Volatility Index (VIX) dropped to its lowest level since June 2007," noted another analyst, "as investors continued to bid the market higher as the week drew to an end." 

On Wall Street, the Dow Jones Industrial Average 
gained 53.68 points, or 0.39%, to end at 13,649.70; it rose 1.2% for the week.

Leading gains on the Dow, General Electric shares
 climbed 3.5% after its earnings beat estimates.


The Dow close higher on Friday as it extends the rally off November's high. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If the Dow extends the rally off November's low, October's high crossing at 13,661 is the next upside target. Closes below the 20-day moving average crossing at 13,349 are needed to confirm that a short-term top has been posted.

First resistance is today's high crossing at 13,649.
Second resistance is October's high crossing at 13,661.
First support is the 10-day moving average crossing at 13,486.
Second support is the 20-day moving average crossing at 13,349.


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