Market ticked higher for a 3rdconsecutive day taking SP (+25pts wk) prices right into our first target of SP1315. While most indicators relating to risk on flash the go ahead sign, investors just seem to become more leery of the rally as it grows. And, it has been growing with the SOX (up 7% wk.) taking over leadership from financials/housing.
Back to the ~1315 “R”, as happens regularly at a crucial resistance or support level, news seems to miraculously jump out these levels to solve the issue. It doesn’t necessarily have to happen this overnight, but it could happen next week around the FED meet up.(Jan 25). Market players are likely turning focus into this date. In the meantime, the market may meander, dip a little or overshoot the resistance some.(10-15 SP handles in either direction). In between this weekend and Fed is the China New Year. Speculation has been for another RRR cut, which again may not occur due to some other actions taken already this week. A few weeks ago RRR speculation didn’t materialize and we had a drop. A buy the dip oppy’ would arise, if this occurs.
As far as earnings, even from tonight’s tech giants,(GOOG,IBM, INTC), not expecting any individual tech linked names to drive the market. Equities like UNP are a better gauge now (trans. / industrial) for the market. This is something noted to watch into the trading week as industrials will test the eco' data.