Edging closer to the 13000 mark, the Dow finished the week with solid gains on Friday as Wall Street bets Greece will finally receive its long-awaited bailout, but the Nasdaq Composite failed to join the party.
The Dow Jones Industrial Average, as quoted by foxbusiness.com, climbed 45.56 points, or 0.35%, to 12,949.64, the S&P 500 gained 3.17 points, or 0.23%, to 1361.21 and the Nasdaq Composite fell 8.07 points, or 0.27%, to 2951.78.
The gains in the broader markets leave the Dow at its highest level since May 2008 and just 50 points away from the 13000 threshold, which carries psychological importance for investors.
Continuing their strong start to 2012 amid growing economic hopes, all three major indexes landed in the green this week, marking their sixth weekly gain of the last seven.
The latest bullishness comes as market participants are growing increasingly confident Greece will be able to avoid a default on its debt that analysts fear would deal a serious blow to the European financial system.
In a significant development, the European Central Bank has swapped some of its Greek bond holdings for new ones, according to a report by Dow Jones Newswires.
This shows the central bank's commitment to helping Greece reduce its debt load and take broader actions to help control the eurozone debt crisis.
Potentially, the ECB move could make way for a similar exchange by private creditors early next week. More importantly, perhaps, eurozone finance chiefs are expected to sign off on a $171 billion bailout package as early as Monday, according to reports. Still, the situation remains fluid and analysts note seemingly-secure deals have repeatedly fallen apart at the last minute in the past.
Technically, Jakarta Composite Index (JCI) tends to strengthen within the range of 3,950-4,010. Several stocks to monitor: AALI, ASII, GJTL, and HRUM.
Today, the JCI may move within the range of 3,938-4.016 with uptrend position. MYOR, ISAT, and BBNI should be watched.
The JCI this week is still shadowed by external factors. Investor is anticipating the announcement of 2011's financial result. The index may move within the support-resistance level of 3,952-3,997.
Technically, the JCI may rally today. We recommend buy for ASII and sell for SGRO.
Disclosure: No position at the stock mentioned above.
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