On Friday, the $SPX broke out and closed above recent highs, a bullish sign. We are now closing in on fresh all times highs at 1576, just 7 points away. Here’s a look at the 9 month chart with PPT hybrid ranges:
Now the question becomes will we sell off after printing all time highs? Well, with everyone looking that way, I think there’s a chance we overshoot, and overshoot significantly.
Of couse it all depends on the direction of the Euro as the market seems to be in lockstep with the currency. Here’s a 30 minute chart of the euro:
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The other concern amongst traders is the breakdown in copper on the weekly chart. With further weakness, you have to think CAUTION with new longs. Here is the weekly chart:
I will also be watching $BAC and $AAPL to see how the react to their respective 20 day moving averages. Here are the daily charts:
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If $BAC, the Euro, & copper trade higher, I think you have to be long the market for the final push higher. However, if the three, or even one start to breakdown from these levels watch for the bears to pounce.
Now for some trade ideas on market strength:
From the top 100 Screen: RDN, GMCR, GTN
From the top 10: SODA, NOV, UA, NVDA
From the small bombs: DCTH, S
Stocks that trade Weekly Options: BBRY, FB, NFLX, BAC, C, WFC, X, ABX, BIDU, SINA, & IOC
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Economic data ahead: CLICK HERE
Industry Scorecard, weekly change: CLICK HERE
Good luck this week gentleman! And, may you all get a good start to the second quarter in 2103.
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