U.S. indexes climbed again on Monday. The SP500 has made its longest win streak since July and Nasdaq hit a new historical high. The Dow rose with +0,9% to 15.063, which is the best performance in the last eight weeks. The SP500 rose by +1,0% climbed to 1.671. The Nasdaq Composite gained by +1,26% rose to 3.706.
The strange thing is the volume is still solid, volumes are pretty low. In a broader picture SP500 is in a real apathy, no volume at all. The same volume was at 1998. Since the Lehman's insolvency the volume has been tumbled a lot constantly. That is a good marker that the big size of investors are still off-side. So there is a power on the buying side. Most of the investors still waiting for jump in or not. Their concern about the FED tapering helps a lot for the bullish sentiment. This month started much better after the losing August - SP500 lost 3,1% in that month. By now, many Wall Street pros are back at their desks after the summer break, but my bet is the low volume and high volatility is likely to continue.
In terms of technical side, the Dow is still lagging behind the Nasdaq so we are expecting big upward movements in the following couple of days. Our short term target is at 15.440, we might see this level untill this Friday. That means 350points profit from the current levels.
Have a good day!