Stock Market (S&P 500) On the Verge of Breakout
The S&P closed out a strong week, closing just below 1150. Highs (January)
are just above 1150 so the stock market sits on the verge of a breakout to
the upside. In late February and early march we got confirmation that the
sell off down to 1045 was a "bear trap" and the daily uptrend has remained
intact since those lows were put in on Feb 5.
If that breakout occurs the overall target is 1194-1200. That said, the
weekly average movement of the S&P is just under 31 points so it will take
some time to reach that target. Short-term targets are 1162 followed by
1174.
The blue lines on the chart mark expected support levels on pullbacks. At
the moment they correspond with support at 1126 and 1116-1113 - these levels
are fixed while the blue lines are sloping so their support values change
over time.
At this point a re-test of recent lows near 1044 is highly unlikely. A
close above 1151 would indicate a strong likelihood of another wave higher.
The advance has been sharp and I do expect a pullback to the trendline but
overall the outlook is bullish based on the price movement.
I continue to dislike the fundamental picture especially with some of the
proposed programs coming out of Washington. But I will keep this technical
and will address my "fundamental" issues in my weekend Newsletter.
Cory Mitchell, CMT
Vantage Point Trading
---
Analysis written by Cory Mitchell for CFDsPros.com
---
Risk Disclosure:
Trading on margin involves high risk and is not suitable
for all investors. The high degree of leverage can work against you as well
as for you before deciding to trade you should carefully consider your
investment objectives, level of experience, and risk appetite.
__________________
For information on stocks and real time stock quotes see CFDsPros.com.
The S&P closed out a strong week, closing just below 1150. Highs (January)
are just above 1150 so the stock market sits on the verge of a breakout to
the upside. In late February and early march we got confirmation that the
sell off down to 1045 was a "bear trap" and the daily uptrend has remained
intact since those lows were put in on Feb 5.
If that breakout occurs the overall target is 1194-1200. That said, the
weekly average movement of the S&P is just under 31 points so it will take
some time to reach that target. Short-term targets are 1162 followed by
1174.
The blue lines on the chart mark expected support levels on pullbacks. At
the moment they correspond with support at 1126 and 1116-1113 - these levels
are fixed while the blue lines are sloping so their support values change
over time.
At this point a re-test of recent lows near 1044 is highly unlikely. A
close above 1151 would indicate a strong likelihood of another wave higher.
The advance has been sharp and I do expect a pullback to the trendline but
overall the outlook is bullish based on the price movement.
I continue to dislike the fundamental picture especially with some of the
proposed programs coming out of Washington. But I will keep this technical
and will address my "fundamental" issues in my weekend Newsletter.
Cory Mitchell, CMT
Vantage Point Trading
---
Analysis written by Cory Mitchell for CFDsPros.com
---
Risk Disclosure:
Trading on margin involves high risk and is not suitable
for all investors. The high degree of leverage can work against you as well
as for you before deciding to trade you should carefully consider your
investment objectives, level of experience, and risk appetite.
__________________
For information on stocks and real time stock quotes see CFDsPros.com.
