Market close to 2007 highs
MARKET UPDATE posted 03/13/12
The stock market keeps inching higher on good economic data. Today the retail sales came in very good and it helped the weak market back to close near new highs. This market is now entering a zone of unchartered territory. The 2007 highs are at 1576 just a stone throw from 1556 not more than 20 points away.
This could possibly create a twin top or it may not create one and we can see a push through to new highs. The improving economy is the core driving force at this moment. Last Fridays unemployment came in at 236,000 which was a good number. This was aided again by the new data on retail sales as of today. The momentum will keep the market up for weeks.
Some shorts are overly concerned, but they keep hoping this will fail. Right now the fundamentals are driving this market up and higher. There will be a time to short and it may come if the Twin top at 1576 fails. But that is pure speculation and not reality.
GOOG itself is at 826 and is making a classical bullflag. There is a narrow range with tight closes and drifting lower. This kind of pattern has been seen on this stock several time before. LNKD another stronger stock -has been consolidating for a week and today it broke out from the range and made a go at it. The stock is poised to go higher, since it refuses to give a pullback or go down in this market. There are other leaders worth mentionaing like NFLX that clocked 12 point gains today as well.
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