I was filled today at the open, so nice trades so far. But I don’t think the market is done yet. Not this close to all time highs. All the selling that came last week bewildered chartists, as it was such a deep sell off that could easily have broken the bulls back. But alas, as I had mentioned yesterday, I firmly believe that all time highs will be delivered very soon. How high it goes is anybody’s guess, but I would think we will be looking at 2130 to 2135 at least before a significant pull back will come. Just an estimate, so let’s see.
That being said, it may have to wait till Monday or Tuesday now, as we will be due a small pullback tomorrow after today’s big rally. But i am expecting it to be relatively shallow.
U.S. stocks closed one percent higher on Thursday as investors cheered further weakness in the dollar and calmer bond markets, amid mixed economic data.
The S&P 500 set a new closing record with information technology jumping 1.7 percent to lead all 10 sectors higher.
The Dow Jones industrial average came within 50 points of its record high after gaining more than 150 points in morning trades, with Apple and Microsoft leading the advancers. JPMorgan Chase hit a 15-year high.
The Nasdaq rose more than 1 percent to within 50 points of its record close, boosted by tech and biotechnology stocks.
Analysts attributed gains to several factors, including further decline in the U.S. dollar and lower bond yields. Traders also noted some short covering ahead of options expiration on Friday.
Weekly jobless claims came in at 264,000, a touch below last week’s reading and below expectations for a slight increase. The initial filings for unemployment benefits per week remain near 15-year lows.
The producer price index for April fell 0.4 percent, with the core figure down 0.2 percent, missing expectations for a slight gain. The monthly measure of input costs is a secondary factor in determining the rate of change in prices, after the consumer price index.
The Federal Reserve will eye both the employment situation and inflation for signs the economy is ready for an interest rate hike. Consensus is for a rate hike in September or later in the year, but central bank policymakers have not ruled out a June liftoff.
European equities ended higher, boosted by gains in steel producers the European Union’s decision to impose a duty on imports of electrical steel.
Greece on Thursday offered a concession to its international lenders by pushing ahead with the sale of its biggest port, Piraeus, Reuters said.
Earnings: Nippon Telegraph, Petrobras
8:30 am: Empire State survey
9:15 am: Industrial production
10:00 am: Consumer sentiment
4:00 pm: TIC data
News Source: CNBC