Friends,
The bulls stepped in this afternoon, after a choppy day of trading, and decided to try to get back much of yesterday’s losses. In the end, the Dow Jones Industrial Average finished the day 162 points higher and the S&P 500 was up almost 13 points to close at 1242. Trading, of course, was driven by rumors coming from the meetings in Europe (the EU Summit) that were still going on as the markets came to a close. Until there is some clarity, we won’t attempt to try to decipher the smoke signals coming from the Eurozone.
Gold continued its advance rising $20 to the $1721 area, but oil finally pulled back $2.54 to close near $90.63 based on a higher than expected inventory number.
On a technical basis, we are still watching 1257 as a major resistance level that the bulls will have to penetrate. If they can get through that level, then the bulls might be able to establish a nice run into the end of the year. Of course, we need the Europe situation to be somewhat calm, hopefully aided by a plan of action that would at least buy some time for the leaders to implement further fiscal changes.
As traders wait to see what develops in Europe, we will also be focused on tomorrow’s GDP release. We know this number will be revised a couple of times, but it will be the first indication as to whether we are entering a new recession or not. The most recent economic numbers seem to indicate that we are not. We’ll keep an eye on Europe and the GDP release tomorrow and let you know how it turns out.
Have a nice evening everyone.
