Stock indexes see breakouts, but caution ahead


Market Snapshot for January 9, 2011 (10:30 p.m. ET):

Closing Prices: DOW 12,392.69 (+32.77, +0.27%), S&P 500 1,280.70 (+2.89, +0.23%), NASDAQ 2,676.56 (+2.34, +0.09%), Nikkei 225 8,427.83 (+37.48, +0.45%), DAX 6,017.23 (-40.69, -0.67%), FTSE 5,612.26 (-37.42, -0.66%)

OIL 101.57, GOLD 1,617.00, SILVER 29.07

EURO 1.2772, YEN 76.82, BRITISH POUND 1.5469, U.S. DOLLAR INDEX 81.25

Slow start to the week, but...

After a week of stagnant trade, things are finally starting to look promising. The market was stuck in a narrow trading range with light volume into the holidays and even throughout the first week of trade in 2012 despite a jump into the first day of trade. But the indices hit the equal move point on the congestion when comparing the time of the end-of-the-year trading range to the one this past week and began to show promise for an upside breakout. This promise began when the indices rallied sharply in premarket trade on Monday morning. Then they continued to bump up against the price resistance at the upper end of the 30-minute trading channel, creating a change in the momentum within the larger period of congestion. The breakout finally came afterhours and into early premarket trade this morning.

Dow Jones Industrial Average (Figure 1)

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