One would have expected 1395 to provide some resistance as it had multiple references pointing to it as an area that should cause some issues for the market. But there is one solution to resistance – gap the market up over that level in premarket. We saw the market begin the day at 1396 on a gap up and thus far the extremely light volume affair is nothing but a party. With two gap ups this week and nothing but green days all week, it should be interesting next week when the adults return back to town.
Next key level is 1404 which has been a pivotal area through almost the entire year of 2012.
Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund's holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/holdings/blog