FB - jumps on inclusion to the sp'500

Whilst the main market saw opening weakness, Facebook (FB) jumped 4% higher, on news it will be added to the sp'500 index later this month. FB settled +5% @ $51.83. Near term outlook remains bullish, and a test of the recent high in the $54s looks likely within days.


FB, daily

Summary

FB teased the bears recently..only to re-take the broken $44s..and is now continuing to surge on more positive news.

The inclusion into the sp'500 will mean many institutions that track the sp'500, will be forced to buy it, and thus we have added underlying upside pressure for the rest of December and into January.

The big issue is how will the market react to Q4 earnings..even if they are 'better than expected'.

So long as the main market broadly keeps rising, FB has a good chance of breaking the $60s by late January.