U.S. stocks and major indexes opened the week with gains, shaking off fear and a weak economic report
Investors continued to believe that it is smooth sailing ahead as many stocks and major indexes all showed gains today with the Dow Jones Industrial Average (NYSEARCA:DIA) gaining 0.39%, the S&P 500 (NYSEARCA:SPY) adding 0.73%, the Russell 2000 (NYSEARCA:IWM) jumping 0.96% and the Nasdaq 100 (NYSEARCA:QQQ) climbing 0.66%.
Positive news came from Germany, where investor sentiment improved, while negative economic news came in the form of the home builder’s index which declined to 46 from last month’s 47 and missed expectations in the 48-49 range.
On a technical basis, stocks and major indexes remain in overbought territory at levels that generally lead to some magnitude of correction.
Fundamental risk remains as the March 1st deadline for the sequestration government spending cuts looms.
Congress has gone on vacation and both sides, as well as most investors, seem to believe that another 11th hour save will prevent the mandatory cuts from going into effect…