Stock indices screamed higher continued their ebullient rally triggered by the “resolution” of the fiscal cliff situation. Regardless of the attribution, momentum confirmed the strong move up and breadth (NYSE Advancing minus NYSE Declining issues) registered its strongest reading since August of 2011. Chart at bottom.
Regardless of the fact that there are numerous divergences among the indices as the 2012 highs were taken out (and new all-time highs in the Russ) today in the Russell 2000 but not (yet) the S&P, YM or Nasdaq 100.
The strong momentum strongly suggests higher highs in the indices before any significant retracement occurs. However, the indices should become more rotational intraday offering the daytrader more opportunity over the next few days in both directions.
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