Market Digests Bigs Gains

On Thursday, the market took time to digest the big gains from Wednesday's rally. Despite the Nasdaq and S&P both closing down, the gains from Wednesday were not seriously eroded. The Nasdaq closed down -11 points (-0.29%) and the S&P lost -1 points (-0.06%). The Dow was a winner on the day, rising +11 points (+0.07%). 

The market is still in a range pattern above the 50 EMA. But Wednesday's strong up day has set the stage for a potential breakout and upside Santa Claus rally. Resistance for the Nasdaq is 4,081 and 1,811 for the S&P. 

There was some mixed economic news reported today. Initial jobless claims rose by 10,000 to 379.000. Existing home sales fell 4.3%. The Philadelphia Fed manufacturing index rose 7.00 in December.