WALL STREET : Dow Atop 12500 level since May 2008

Major indexes all notched technical victories ahead of holiday-shortened week
The major market indexes marched into the black today, though a dose of uninspiring economic data mellowed the bulls' earnings-related momentum. Specifically, Silicon Valley sultan Apple Inc. (AAPL) blew past analysts' profit projections, echoing similarly solid earnings showings from a few blue chips -- namely Travelers Cos. (TRV) and Honeywell (HON). However, the Labor Department reported that first-time jobless claims remained above the closely watched 400,000 level, and upwardly revised last week's unemployment claims. Meanwhile, the Philadelphia Fed index fell to a five-month low in April, which also deflated the bulls' lead. Nevertheless, the Dow Jones Industrial Average (DJIA) managed its first finish north of 12,500 in nearly two years, while the S&P 500 Index (SPX) and Nasdaq Composite (COMP) notched technical victories of their own.

Portfolio Manager Quote ..... "Apple's earnings seem to indicate that the consumer is doing well. That has eased some fears that companies would get hit in the first quarter if rising crude-oil prices made consumers more reluctant to spend. What we're seeing in earnings is it's not having as pronounced an effect as we had thought" ..... Unquote.

Thanks to a last-minute bullish injection, the Dow Jones Industrial Average (DJIA – 12,505.99) ended within a point of its new multi-year high of 12,506.06, tacking on 52.45 points, or 0.42%, by the close. Travelers led the 19 advancing blue chips with an earnings-induced gain of 3.7%, while Pfizer (PFE) paced the 10 laggards with a loss of 2.9%. Meanwhile, Merck & Co. (MRK) called the session a wash by finishing flat. For the holiday-shortened week, the DJIA tacked on a healthy 1.3%, ending atop 12,500 for the first time since May 2008.

The S&P 500 Index (SPX – 1,337.38) fared similarly well -- as history dictates -- gaining 7.02 points, or 0.53%, by the bell. More notably, perhaps, the broad-market barometer added 1.3% for the week, ending north of the closely watched 1,333 level -- which marks double its March 2009 low -- for just the second time since June 2008. Finally, the Nasdaq Composite (COMP – 2,820.16) fared the best of the three, advancing 17.65 points, or 0.63%. For the week, the tech-rich COMP gained an impressive 2%, settling atop the 2,800 level for just the third time since November 2007.

TECHNICAL ANALYSIS
Dow Jones Industrial Average
The Dow closed higher on Thursday and posted a new high for the year as it extends the rally off the 2009 low. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term.

If the Dow extends the aforementioned rally, monthly resistance crossing at 13,136 is the next upside target. Closes below Monday's low crossing at 12,093 are needed to confirm that a short-term top has been posted and would open the door for a larger-degree decline into early-May.

First resistance is today's high crossing at 12,496.

Second resistance is monthly resistance crossing at 13,136.

First support is the 20-day moving average crossing at 12,335.

Second support is Monday's low crossing at 12,093.

HAPPY TRADING