A/D Line and Transports Favor Upside
12/14/2009 10:46 am EST
Despite the lagging action of the NASDAQ, the recent new highs by the NYSE A/D line and a breakout by the transport stocks favors an upside resolution. A close in the S&P above the 1115 area should signal a rally to the 1150 area and take the Dow to 11,250. It would take a high-volume, sharply lower close to reverse the technical improvement.