The Dow Industrials have gotten above the 200-period (thin red) and 50-period MA (thin blue) and a couple of other levels of resistance. We'd expect some profit taking by those that assumed the risk near 10,400 at current levels. MACD is turning higher here, but still remains below the zero level. OK to be bullish here in the Dow Diamonds (DIA) with a stop just under recent lows. Short-term traders will be targeting the 10,700 and 10,800 levels. The Dow remains our "strongest" technical index among the big three (S&P 500 and NASDAQ Composite)as it has for the past couple of months.
Wal-Mart is biggest gainer.
Shares of Wal-Mart (WMT) are leading the Dow's gain with an impressive gain of $3.50 to $48.69. Much like the Dow Industrials, shares of WMT are back above their 50 and 200-period MA's. We like the way the stock came right back down to our "old" level of resistance. Look for a pullback in the $46 range.
Wal-Mart Stores Chart - 60-minute interval.
Shares of WMT look a little overextended on the 60-minute chart and we'd be eyeing a pullback in the high $46 to low $47 level to get bullish. Watch the 200-period MA (thin red) as a level for a pullback to occur.
S&P 500 Index Chart - 60-minute interval.
The SPX is trying to achieve session highs in the late morning and things are looking better here. We're starting to get some green underneath this index and very little red to keep things in check much longer. There's still a lot of stock overhead for this index, but things are shaping up for bullish trades. The last rally for this index stalled near the 1,390 level and that would be our short-term bullish target.
NASDAQ Composite Chart - 60-minute interval.
The NASDAQ is trading up better than 1% this morning, but has retreated to session lows. This index remains technically weak compares to the Dow and SPX and the 3,000 level looks to be a level of psychological resistance. Earlier this morning we noticed that CSCO was having some trouble with a downward trend line and we'd keep an eye on CSCO as a "key stock" to watch for a NASDAQ advance from current levels.