Summer Highs Are Breached, Next Stop; April’s Highs
The action since this rally was confirmed on the September 1, 2010 follow-through day (FTD) has been strong. Looking forward, the window is open for disciplined investors to carefully buy high-ranked stocks, while many pundits are expecting that markets may consolidate following recent gains. It is very encouraging to see the major averages and several leading stocks break above stubborn resistance levels and continue marching higher. All the major averages rallied and managed to stay above their respective 200-day moving average (DMA) lines last week, which is another encouraging sign. Now that the summer highs are breached, the next important resistance level for the major averages are their respective April highs.