The markets finished the holiday shortened week on a high note as Friday brought new closing highs on a number of indexes. The market was encouraged by news out of Greece that an agreement had been reached to extend its bailout by 4 months. Regardless of the ultimate success or failure of said agreement, the market viewed it as bullish in the short-term and ran equities to new closing highs across the board.
The Dow and NYSE finally hit new closing highs following the strength of Nasdaq, S&P 500, S&P Midcap 400, and Russell 2k. The last index we're watching to complete a triple crown of sorts would be the Transports. They've yet to do so but are inching closer.
One thing that could be viewed as worrisome is breadth. There's still lagging breadth in the S&P 500 but we'll attribute that to the weakness in the energy space and give it a pass for now. However, the current leading index, the S&P Midcap 400, is showing similar traits as the % of stocks above their 10, 20, 50, and 200 day moving averages have yet to break out to highs with the index. Momentum peaked towards the end of October and early November and has yet to take out those highs. That will be needed in order to sustain the current moves to new highs.
