Setting Up For a Bullish Swing Trade
The new year got off to a good start, with all of the major U.S. averages ending the first week of trading higher. As of Friday's close, every major U.S. stock index is back above its respective 200-day moving average, with the exception of the Russell 2000. The Dow Jones Industrial Average has already surpassed its October 2011 high, as has the Dow Jones Transportation Index, which tends to lead the major averages.
Reasons for positive sentiment are growing by the day. News about the U.S. economy has been surprisingly robust, with most forecasts beating expectations. The manufacturing and services data from the Institute for Supply Management confirm the economy's solid, if unspectacular, expansion. Construction spending also beat consensus forecasts. The increase in non-farm private payrolls and decrease in the unemployment rate announced Friday only added to the relative optimism....183 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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