DJIA, SPX, NASDAQ & RUT All Close Above 20 DMA

DJIA + 144.32, +1.57% SP500 + 14.66, +1.54% NASDAQ Comp. + 22.43, +1.32% Russell 2000 + 23.34, +4.54% Exchange NYSE NASD Advancing 2,512 2,223 Declining 938 702 Oil $67.81 +$1.85 Gold $718.20 -$20.30 $SOX 239.47 +4.41 Strongest Sectors: XLF +4.86%...XLY +4.08%...XLI +3.32% Weakest Sectors: XLU -2.66%...XLP -0.62%...XLK -0.60% Sector Watch Up Trending: Sideways: Down Trending: XLP, XLF, XLY, XLV, XLI, XLE, XLU, XLB, XLK If you have been listening to any of our audio commentaries or reading our posts since October 10, you know that we have been thorough in pointing out the technical evidence which began appearing on the charts on October 10 that the down trend could be coming to an end. New technical evidence today shows the DJIA, SPX, Nasdaq and RUT all closed above their respective 20 DMA on Friday. The DJIA had its first two consecutive up days, Thursday and Friday, since September 25 and 26. The Nasdaq had its first four consecutive up days, Tuesday to Friday, since May 27 to 30. Also, have you noticed that the RUT was up 4.5% a day on Thursday and Friday. This is a strong indication that the flight to safety action (selling smaller stocks and buying more mature stocks) during the month of October is shifting back to a more broad based acquistion of stocks by the big money crowd. As we stated Thursday evening what this means is that buyers are becoming more aggressive and sellers are becoming less aggressive. The markets will still fluctuate, at some point the rally of this week will exhaust and the markets will pull back to support. If the next pull back to support is a higher low, that will be further technical evidence of a changing trend. The market still needs to form both a higher high, above the October 14 high, and a higher low to establish a new up trend. The Financial Sector, XLF, +4.86%, was once again the top sector on Friday Friday’s Action Moving Up: STRA, MA, DECK, ESRX, CF, NIHD, DRYS, MEE, PNRA, ZION, KRE, UAUA, KBE, NDAQ, NUE, MOS, GS, MS, SOHU, ONXX, V, COH, MER, BTU, IPI, LCC Moving Down: BIDU, PCLN, AEM, X, GRMN, AGU, GDX, Intermediate Term Market Trend: Dow Short Term Market Trend: Up