Feb 20th, 2013 – S&P Closes In On Record High

Stocks drifted higher to close at session highs today, with the S&P nearing its all-time high, as investors seemed to shrug off a mixed bag of economic and earnings reports.

Stocks bobbled along the flatline early in the session, then turned higher midday.

The S&P 500 and the Nasdaq also climbed. The S&P 500 is closing in on its all-time high of 1,850.84. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 15.

On the economic front, jobless claims declined less than expected in the latest week, while consumer prices ticked up 0.1 percent in January, matching expectations.

Meanwhile, data from the Philadelphia Federal Reserve showed manufacturing activity in the Mid-Atlantic region unexpectedly contracted in February as new orders plunged.

Investors have been largely shrugging off lower-than-expected economic data over the last two weeks, pointing to harsh weather as a reason for unexpected weakness in reports.

Natural gas inventories were revised upwards but were still at their lowest for February since 2004. Nat gas futures spiked to settle at a five-year high on Wednesday on forecasts of another arctic air blast descending on North America.

New Federal Reserve Chair Janet Yellen is scheduled to testify before lawmakers on Feb. 27 after a Senate panel previously cancelled the original hearing date due to a snowstorm in DC. Yellen is expected to provide an update on the U.S. central bank’s semi-annual monetary policy report.

European shares slipped after France’s service sector shrank by its most in nine months in February.

FRIDAY: Existing home sales, Fed’s Bullard speaks; Earnings from Dish Networks

Market Update:

So where does the market go from here….who knows.  It’s at a key turning point.  We could have a lower high on the S&P 500 which would mean that prices should come down to test a moving average support, but it could also keep going higher and break a new all-time high.  It’s options expiration day tomorrow, so I don’t expect much of a move, probably sideways.

Asia and Europe should go back up tomorrow after what happened in the US today.