The stock market is climbing the wall of worry

FUSEX chart

In spite of the many reasons why investors should be fearful, the stock market is off to a good start in 2012. Our benchmark, the Fidelity Spartan 500 Index fund (FUSEX, change: 0.88%), is making slow, but steady gains. FUSEX has moved now decisively above the downtrend line which defined the market direction in the second half of 2011. A strong earnings season and lack of negative news from Europe can reinforce the positive trend in the coming weeks.

Technical analysis screens are provided by FidelitySignal.com   

The S&P 500 index has reached a resistance level, a pullback is possible in the next few days


The chart shows the technical resistance level defined by the red trend line for the Fidelity Spartan 500 Index fund (FUSEX, change: 1.04%). Due to the low volume of the recent rally, a pullback from this level is more probable than a breakout.

The chart shows the technical resistance level defined by the red trend line for the Fidelity Spartan 500 Index fund (FUSEX, change: 1.04%). Due to the low volume of the recent rally, a pullback from this level is more probable than a breakout.

Mutual fund screens and buy/sell signals are provided by FidelitySignal.com  

Money flow: the bull market is back for U.S. equities

In a remarkably bullish trading session today equity investments rose across the board in response to positive news about the potential resolution of the European debt crisis and on the heels of days of positive earnings and economic data in the U.S.

Our equity benchmark, the Fidelity Spartan 500 Index fund (FUSEX, change: 3.43%), continues to advance after the recent bullish breakout.

Our equity benchmark, the Fidelity Spartan 500 Index fund (FUSEX, change: 3.43%), continues to advance after the recent bullish breakout.

All Fidelity select sector and international equity funds closed higher in the lifting tide of buying. While stocks advanced, investors rotated money out of bonds, with the long-term U.S. treasury bonds being hit the hardest.

The Fidelity Spartan Long-term Treasury Bond fund (FLBIX, change: -3.07%) was the weakest performer today.

The Fidelity Spartan Long-term Treasury Bond fund (FLBIX, change: -3.07%) was the weakest performer today.

Mutual fund screens and buy/sell signals are provided by FidelitySignal.com