Economic Data Tops Estimates; Stocks Rally

At this point, the Dow Jones Industrial Average, S&P 500, and the NYSE composite have all traded above resistance (their long term 200 DMA lines and recent chart highs) which leaves the tech-heavy Nasdaq composite and small-cap Russell 2000 slightly below their recent chart highs. However, the fact that all the major averages are still above their respective 2-month downward trendlines bodes well for this five week rally. In order for a new leg higher to begin, all the major averages must close and remain above their respective resistance levels. Remember that the window remains open for for high-ranked stocks to be accumulated when they trigger fresh technical buy signals. Trade accordingly.