This week the SPX broke above triple resistance.
1) Above daily declining trend line.
2) Above outlier Fib resistance at .666 retrace of the September to December decline.
3) Above the 200 day SMA
Of the three break throughs the move above the 200 day SMA is the most important. Many stock fund managers - even those that primarily use Fundamental analysis follow this indicator. Stock fund managers have the big bucks and this bullish break through will probably bring in a flood of new buying, opening the door for a move back to 2940 all time high.
Could there be any shorting opportunities? Yes, of course in bull markets its easy to catch tops because there are so many of them. Just recently the SPX topped at 2738 - in less than a week it declined 2%.
The bears are scrambling for crumbs that have fallen off the table, while the bulls feast on a banquet of long opportunities.
Mark
1) Above daily declining trend line.
2) Above outlier Fib resistance at .666 retrace of the September to December decline.
3) Above the 200 day SMA
Of the three break throughs the move above the 200 day SMA is the most important. Many stock fund managers - even those that primarily use Fundamental analysis follow this indicator. Stock fund managers have the big bucks and this bullish break through will probably bring in a flood of new buying, opening the door for a move back to 2940 all time high.
Could there be any shorting opportunities? Yes, of course in bull markets its easy to catch tops because there are so many of them. Just recently the SPX topped at 2738 - in less than a week it declined 2%.
The bears are scrambling for crumbs that have fallen off the table, while the bulls feast on a banquet of long opportunities.
Mark