The market was in a jolly mood today! 
JPM announced that it would raised the buyout offer for BSC to $10/share. BSC shares doubled at one point, trading above $13. BSC closed at $11.25, up +88.76%. JPM also closed on the up side. Market seemed to like the news.
The Dow added +187.32 points; SPX gained +20.37 points; Nasdaq jumped +68.64 points!
This weekend, in my Market Forecast, I said,
“For the new week, I think the market is ready to bounce. What we need to see is a few days of continuous rally and see if the market can catch the daily upper BB. There will likely to be times when the market needs to vent, but breaking above the immediate resistance (SPX 1340; Nasdaq 2300), and staying above, could turn this resistance into a support.”
Let’s see how the market closed today:
INX2 (Internet), SOX (semiconductors), and BTK (biotechs) all gained over +3%; SWH (software) added +2.16%. PBW (clean energy) advanced +4.14%. XME (metals and mining) was strong also, rising +4.56%. MOO (agriculture) rebounded after another week of sell-off, up +4.43%. FXI (Chinese ADRs) only garnered +1%.
SPX
SPX gained +20.37 points to close at 1349.88, above the 1340 resistance. It closed above its daily MAs. The MACD also went higher.
Nasdaq
Nasdaq jumped +68.64 points to close at 2326.75. It closed above the 2300 resistance and above its daily MAs. Its MACD rose.
So, the market went above the immediate resistance (SPX 1340; Nasdaq 2300). We saw some venting in the afternoon today. Tomorrow’s actions are going to be very important. If the market can stay strong while letting of some steam, it’ll be very encouraging. Let’s see if the market can manage to catch up with the daily upper BB this week.
The techs were ferocious today with Nasdaq jumping up more than +3%! Among the top gainers were: RIMM +6.57% (which I cashed out the gains today with as much as +40.7% and still left about $1 on the table), AAPL +4.7%, GOOG +6.23%, and BIDU +15.44%!! As mentioned before, PBW gained more than +4% today. It might be time to revisit the solar plays as the market bounces. FSLR added +8.18% and SPWR shot up +11.81%. I also like WFR, which advanced +2.59%. XMSR and SIRI got the approval from the Justice Department for their proposed merger. XMSR went up +15.49%, while SIRI added +8.62%
Good night and HappyTrading! ™
