CFDsPros S&P 500 Outlook

[CfdPros]

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

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Analysis written by Cory Mitchell for

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