Late Dollar Decline Lifts Stocks
Around 2pm EST the greenback started to fall and U.S. stocks started to rally. Apple Inc. (AAPL) vaulted +$7.66, or +4.18%, and closed above its 50 DMA line on above average volume. Apple has been a strong leader since the March lows and the fact that it quickly repaired the damage is a bullish sign for this rally. A new crop of high ranked stocks are currently working on new bases (Read:10 Stocks on My Watchlist 12.09.09) as the major averages continue consolidating their recent gains above their respective 50 DMA lines. It was encouraging to see the benchmark S&P 500 bounce off support (shown above) for the fourth time in the past few weeks. To be clear, the bulls deserve the bullish benefit of the doubt until the major averages close below their respective 50 DMA lines. At this point, they are acting well and appear to want to move higher.