NEW YORK (TheStreet) -- The Dow Industrial Average (17,900) held its monthly technical level at 17,737 on Monday, helping the market to stabilize. The Dow set an all-time intraday high at 17,991.19 shortly before noon Friday. The S&P 500 (2077.98) is just below its all-time intraday high of 2079.47 set earlier Friday and is shy of its monthly technical level at 2089.3.
The Nasdaq (4769) and Dow Transportation Average (9119) set multiyear or all-time intraday highs on Nov. 28 at 4810.86 and 9319.33, respectively. Their monthly technical levels are 4784 and 9343, respectively.
The range of the monthly technical levels explains why the Santa Claus rally should continue to be a bumpy sleigh ride.
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Safer investments such as the iShares Transportation Average ETF (IYT) , an exchange-traded fund that tracks the Dow Jones Utility Average, and U.S. Treasuries continue to provide solid gains.
Given continued market momentum, investors trading ETFs mentioned in this article should continue to employ exit strategies.
SPDR Dow Jones Industrial Avg ETF (DIA) ($179.68) is up 8.6% year to date and is well above its 50-day and 200-day simple moving averages at $171.58 and $167.86, respectively. Monday's low at $177.03 held the monthly technical level at $177.13, and Friday's high has been $179.81. The weekly chart is positive but overbought with its key weekly moving average at $174.80.
Investors should book profits by entering a good 'til canceled limit order to sell strength to a key technical level at $184.50. The sell-stop to lock in gains is the key weekly moving average at $174.80.