Market Bias Bullish, but Resistance Won’t Be Easy
From Profit Confidential
January 21, 2013 - 9:51am
It’s amazing how resilient the stock market has been in spite of the concerns toward the U.S. budgetary cuts and debt ceiling, the eurozone’s economic stalling and debt, and the overall earnings risk.
The New Year has started off with a bang, with small-cap stocks leading the pack, as the Russell 2000 is up 4.5% as of January 17. Small-caps will do well if the economy strengthens.
In technology, the NASDAQ was displaying a bearish death cross, with its 50-day moving average (MA) below its 200-day MA. But, with the recent moves, the NASDAQ is showing a bullish golden cross, as the 50-day MA moved above the 200-day MA, based on my technical analysis. In my view, technology stocks will continue to be a top growth area going forward. (Read “When You Need to Buy Technology Stocks.”
Chart courtesy of www.StockCharts.com
The safer money will be with the blue chips, given the uncertaint...
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