Is the Stock Market Really Going Higher???

It appears that the offer pulling may be working as this market once again breaks above resistance on falling average volume.  On Friday the S&P 500 broke above 1100 signaling another potential wave higher.

A large triangle was broken by Friday’s move, as well as the downward trendline extending down since late April.

Given that the market is able to stay above 1070 (currently at 1102.66), these chart patterns provide us with several upside targets.  Initial target is 1140.  If followed by another wave it could push the index into 1190-1210.

While it appears the bulls may have the upperhand over the last month, volume continues to be suspect.  Also, as day traders likely have noticed the movements intra-day while strong in price often lack punch – generally being moved more by offer pulling than actual buying of the book offer.  Of course it is not wise to stand in the way of this, the short-term trend is up and can continue to be for some time.

At this time the levels to watch below where we are currently are: 1070-1060.   A close into this area from where we are now would signal a false breakout to the upside.  A close below 1060 would confirm signaling a re-test of the recent swing low at 1020.  A close below that low has a target of 970.

The chart at the bottom shows the inside levels to watch providing a visual depiction of what is unfolding.

This may be the ugliest video about stock trading I’ve ever seen…but the message in the story is worth it.

It’s about how a regular guy discovered 1 “unusual” trick in trading the stock market…and how he was finally able to get an “edge” over everybody else – other traders & even his own broker – after years of trial & error.

Watch it through to the end here (it’s worth it):

http://www.stockmasterymaterials.com/y/?u=2&i=1083859&l=f9

Good Trading,
Cory Mitchell, CMT

~Know your risks in trading.  Please see our Legal Disclaimer page.