Market Recap - Tuesday December 10th

Three breakout charts below.  First the S&P 500 index ETF (SPY) breaking out above prior resistance.  Please click chart to view.

Although the S&P 500 has not been trading at very high volume, the volume today was 15% higher than yesterday, which counts for something.  Below is a confirmation chart of the transportation index, also breaking out higher.  

Lastly a holding of ours, CELG, has broken out higher on above average volume.  The breakout is a multi-year new high.

Bottom Line:  From a technical basis we have both the S&P 500 and the transportation index on breakouts above previous resistance levels.  On a shorter term basis the market is getting a bit overbought so I would expect some consolidation prior to extending the gains.  CELG a holding of ours has made a clean break higher on above average volume.  I am looking for more upside from them also.  Thank you for stopping by. 

US Dollar and Stocks

I have written about the non correlation between the US Dollar Index and stocks several times including most recently here US Dollar and Stocks. Another words when the dollar index was appreciating higher in value, stocks were falling at the same time.  This non correlation was extremely strong up to around September of 2011.  Let's have a look at a 4 month chart of the US Dollar Index and the S&P 500 with performance since this time.

Notice that both the S&P 500 is higher by 9.62% and at the same time the US Dollar Index is higher by 8.27%.  So the question becomes, has the non correlation been broken?  For the time being yes.  Part of this reason could be due to economic releases that have been better than expected over this past month, or that investment dollars are finding their way out of Europe and into US stocks while the dollar gains strength against the Euro currency. Thank you for stopping by.