Stock Market (S&P 500) Outlook – Feb 22-26

Strong shortened trading week we saw, as the S&P 500 managed to break above the 1104 level and closed out the week above it at  about 1109.   1104 was the price point I mentioned in previous posts as being a pivotal point for the market.  Exceeding that point puts the market in a “no man’s land” there there is a conflict between short and longer term signals.

The market has pulled back to near the middle of a recent high and a recent low, both which sit at the opposite ends of what has been a period of expanded volatility.   Which path the market will take from here becomes somewhat unclear when looking at multiple time frames.

Short-term there is a strong trend higher starting from early February, but if we go back to early January it appears we are in correction.  Day traders are likely to like this area as the intra-day volatility has been quite tradeable.

For the week of Feb 22-26 the outlook is neutral at this point.  Resistance and targets on the up side are 1115 and 1132.  Beyond this is the high at 1150.  The break above 1104 does indicate a move to 1120, and a move through 1120 indicates a move to 1132.  Failure to reach the levels is bearish.

A close below 1104 is the first indication of trouble once again, but is not a clear sign.  1080 should now act as strong support, and if it does not provide support and prices fall through support comes in at 1060, 1055 and 1044.  1080 is also where our short-term trendline will approximately be broken if prices retreat this week.

Weekly average range is just over 31 points, so some of these levels mentioned are out of reach for the market this week, but are important for the larger picture.

For some fundamental concerns with this market, view Euro Banks; Domino Effect?

S&P 500, Daily. FreeStockCharts.com

If you had a big red ‘Profit Button’ that could give you an edge over most other traders and dramatically enhance your profit potential every time you placed a trade…how many times would you press it?

Well…It’s all spelled out in this new report: The Profit Button

Get your copy NOW… even before you place another trade:

http://www.nohypestocks.com/z/?i=1083859&l=f23

Have a great weekend,

Cory Mitchell, CMT

~Know your risks when trading. Please read the Legal Disclaimer page.