February 2013 Stock Market Rally Continues On New Breakout With Low Volatility:
Stocks broke out of last week’s range today after the Dow climbed higher and the S&P 500 as well as the NASDAQ rallied. The upswing in equities was led the financials as well as the small-cap and mid-cap stocks. The stock market continues to rally without Apple and our internal basket of stocks that excludes Apple is doing well for the year.
We told our readers yesterday that we expected either low volatility which could benefit bulls or we expected a break out from the current range we saw that break out today and we’re looking for follow-through tomorrow.
“If stocks continue to trade in a tight range this could favor bulls and be a signal of another leg up but an increase in volatility would be bearish.”
Volatility remained low today and the Dow Jones Industrial Average seems on pace to break through an all-time high if current trends continue. It’s a big week for economic data and will be looking for positive news that may be the new catalyst to keep the February 2013 rally going.
The Dow closed higher today gaining 53.91 to 14,035.67 while the NASDAQ rose 21 points to NASDAQ 3,213.59 and the S&P 500 gained 11 points to 1,530.94.