Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Saturday, July 2, 2011

Wall St rises for 5th day on strong data

NEW YORK (Reuters) - July started on a positive note for U.S. stocks with Wall Street notching its fifth day of gains on Friday after a surprising jump in manufacturing data eased concerns about a tepid economic recovery.

The gains put equities on track for their best week in nearly a year, as the data and a temporary resolution to Greece's debt situation spurred increased demand for riskier assets.

"It's been quite a week, that's for sure. The strength just keeps getting better," said Andy Fitzpatrick, director of investments at Hinsdale Associates, in Hinsdale, Illinois. "It was positive to see a resolution in Greece and (the strength) could continue into July ... my view is that the outlook is pretty positive."

The pace of growth in manufacturing picked up for the first time in four months, with an index of national factory activity rising to 55.3 in June from 53.5 in May, Institute for Supply Management (ISM) data showed.

The ISM survey built on surprisingly strong regional business data on Thursday, reversing a recent trend of weaker-than-expected data.

The Dow Jones industrial average (DJI:^DJI - News) was up 157.30 points, or 1.27 percent, at 12,571.64. The Standard & Poor's 500 Index (^SPX - News) was up 16.98 points, or 1.29 percent, at 1,337.62. The Nasdaq Composite Index (Nasdaq:^IXIC - News) was up 39.26 points, or 1.42 percent, at 2,812.78.

Friday marks the fifth day of a rally as stocks rebounded from a spate of weakness over the last two months. The S&P 500 (^SPX - News) climbed further above resistance at its 50-day moving average at 1,317, establishing another floor in the market after the benchmark index moved above a number of technical resistance levels. The S&P is up 5.4 percent this week.

Read more

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Related Posts Plugin for WordPress, Blogger...