Nasdaq Retreats; Other Major Averages Advance
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! The current rally is in 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. December’s jobs report will likely set the stage for the next near term move for the major averages but until support is broken (50 DMA lines for the major averages), this rally deserves the bullish benefit of the doubt.