Week 1 of 2010; Stocks Rally
However, after all was said and done, stocks remain strong as investors digested the latest round of economic data. The benchmark S&P 500, Dow Jones Industrial Average, NYSE composite, mid-cap S&P 400, small-cap Russell 2000 and small-cap S&P 600 indices all enjoyed fresh recovery closing highs in the first week of 2010 and the tech heavy Nasdaq composite closed right near its respective high. The current rally just ended its 44th week (since the March 12, 2009 follow-through day) and on all accounts still looks very strong. In addition, most bull markets last for approximately 36 months, so the fact that we are beginning our 10th month suggests we have more room to go. Until support is broken (50 DMA lines for the major averages) this rally deserves the bullish benefit of the doubt.