Happy Holiday!

Looks like Santa Claus is bringing the bulls a present for the holiday by having the SP500 breaks out of the wedge and move back above the 1260 level. The daily chart for the SP500 shows the recent price actions seem to favor an upside breakout.



As another possible holiday gift, the battered financial sector finally showing some upside bids and could be setting up to reverse its downward trend (see the chart for ETF, XLF below.)



And not to overlook the homebuilders, they too are showing some sign of upside price trend. Take a look at the price chart for the homebuilders ETF, XHB.



Finally, Santa did not forget AAPL. It too has moved above the baseline near 396 and appears to be making a move back above the 400 level.



If these price actions hold up and the SP500 stays above 1260, then the SP500 could end the year 2011 in the green.

Have a happy holiday!

Disclosure: long on AAPL

A Change In The Market

The SP500 has been chopping around within a range of 1120-1220 and it appears went nowhere. But if one look at various sectors within the market, one could sense the market’s characteristic is changing, at least for the near term. This change does not imply the market is reversing direction and heading toward a new bull trend. But the price actions of the sector ETFs shown on the following chart are signaling a possible near term rally could be in the offing. Unless something unexpected happen in the Euro zone, the market appears to have adjusted to whatever will most likely to occur.

(Click on the chart to get a larger view. The red lines are likely resistance & support levels)