DJIA on 4-Jan-2011

Uptrend likely to continue towards 11850.
Market has rally sharply on the 1st trading day, it has break above 29/12/10 high 11630, this level shall act as a minor support the uptrend for this week. Strong support 11530.

Looking forward to DJIA breaking 11850 (2008-08 high) and 12000 and 12300.


Quote:

US Stocks Close At Two-Year Highs In Strong Start To 2011
By DONNA KARDOS YESALAVICH
Of DOW JONES NEWSWIRES

NEW YORK -- U.S. stocks started 2011 with a bang Monday, reaching fresh two-year closing highs as improved manufacturing and construction data boosted investors' outlook for the economy.

The Dow Jones Industrial Average jumped 93.24 points, or 0.81%, to 11670.75, its highest close since Aug. 28, 2008. The climb represented the measure's biggest move since Dec. 3, the third time in a row it rose on the first trading day of the year and its seventh gain in the past nine sessions.

Bank of America led the measure's climb, jumping 6.4%. The banking giant said it expects to take a provision of about $3 billion in the fourth quarter to buy back bad loans from Freddie Mac and Fannie Mae that were issued by its troubled Countrywide Financial unit. Investors were relieved to see the size of the hit from the bad-loan repurchases quantified.

Alcoa and Boeing were also strong, boosted by upgrades from analysts. Alcoa climbed 2.7% after Deutsche Bank raised its investment rating on the aluminum giant's stock to buy from hold, citing "growing optimism" for higher aluminum prices and a belief "Alcoa has turned the corner from an operational point of view." Boeing rose 1.8% after J.P. Morgan upgraded it to overweight from neutral, citing an improving outlook for core commercial aircraft.

However, Intel fell 0.9%. Piper Jaffray cut its investment rating on the stock to neutral from overweight, saying Intel is missing the wave of "ultramobile devices," and it expects personal-computer unit growth to decline.

The Nasdaq Composite added 38.65, or 1.46%, to 2691.52, its highest close since Dec. 26, 2007. The Standard & Poor's 500-stock index gained 14.23, or 1.13%, to 1271.87, its highest close since Sept. 3, 2008.

Volume rebounded from last week's meager levels but was still below the 2010 daily average. Just over 4.5 billion shares changed hands in New York Stock Exchange composite trading during Monday's session; the 2010 daily average was 4.8 billion.

"There's some real optimism for the market for 2011," said Malcolm Polley, president and chief investment officer at Stewart Capital Advisors. "There's a lot of things with potential for this year."

Polley noted that, historically, the third year of a presidential administration has typically been a positive year for the market. In addition, he has been encouraged by the indications for consumer spending from the Christmas shopping season.

A positive start to the year also tends to bode well for the rest of the year. Since 1945, when the S&P 500 has risen on the first day of the year, it has averaged a gain of 10.6% for that year, according to Birinyi Associates.

If stocks climb during the rest of the month, that would also be a strong indication for the rest of the year. Over the past 82 years, when the S&P 500 rose in January it also rose on the year 73% of the time, according to Howard Silverblatt, senior index analyst for S&P.

Monday's gains in U.S. stocks followed rallies overseas, with Europe's markets lifted by euro-zone manufacturing data that showed the sector's expansion accelerated more than expected in December.

Boosting sentiment for the U.S., a reading on manufacturing from the Institute for Supply Management rose, with its new-orders index jumping. In addition, U.S. construction spending rose for a third consecutive month during November.

The data helped bolster investors' expectations for a host of other U.S. economic updates due this week, including retailers' December sales and the government's monthly nonfarm payrolls.

Among stocks in focus, Barnes & Noble climbed 9% after the book seller said its preliminary holiday same-store sales surged 9.7%, partly thanks to strong sales of its Nook e-reader device.

Clorox tumbled 2.7%. Weak sales of disinfectants, bleach and cat litter in the U.S. caused the household-products giant to project fiscal second-quarter earnings and sales below analysts' estimates.

---By Donna Kardos Yesalavich, Dow Jones Newswires; 212-416-2188; donna.yesalavich@dowjones.com