The S+P 500 index is at a crossroads at this point. This rally from right around 666 up to 900 today is quite impressive and it may be more of what we may see throughout the summer. The momentum is good, money is heading back into mutual funds, and the consumer appears to be coming back.
Let's look at some technical indicators. The chart above (Courtesy of www.StockCharts.com) of the 50 vs. 200 day EMA appears to be converging. In an earlier post I indicated that we could be looking at 10,000 Dow and consequently about 1100 on the S+P 500 index. If the 50 EMA crosses the 200 EMA, folks I think we are really off to the races for the rest of the year. At this point it the crossover would likely be concurrent with an important resistance point at 1000 on the S+P 500.
Crossing the 1000 threshold on the S+P 500 would be a great psychological hurdle, couple that with the 50/200 EMA crossover and we could be off up to 1200+ by summer's end. That would be almost a double from the bottom.
I also follow a great blog called "The Wall Street Bully" written by Ulli G Niemann, the site is http://thewallstreetbully.blogspot.com/ , his buy/sell indicator for domestic ETFs is nearing a crossing point as well. I have found that his buy/sell indicator is real good for timing the market, I urge all to visit the site and see for yourself.
The next four weeks will be quite important for the markets and the direction. My advice, pay attention to the S+P 500 index, pay attention to the American consumer, and do your own due diligence. Happy investing.
Let's look at some technical indicators. The chart above (Courtesy of www.StockCharts.com) of the 50 vs. 200 day EMA appears to be converging. In an earlier post I indicated that we could be looking at 10,000 Dow and consequently about 1100 on the S+P 500 index. If the 50 EMA crosses the 200 EMA, folks I think we are really off to the races for the rest of the year. At this point it the crossover would likely be concurrent with an important resistance point at 1000 on the S+P 500.
Crossing the 1000 threshold on the S+P 500 would be a great psychological hurdle, couple that with the 50/200 EMA crossover and we could be off up to 1200+ by summer's end. That would be almost a double from the bottom.
I also follow a great blog called "The Wall Street Bully" written by Ulli G Niemann, the site is http://thewallstreetbully.blogspot.com/ , his buy/sell indicator for domestic ETFs is nearing a crossing point as well. I have found that his buy/sell indicator is real good for timing the market, I urge all to visit the site and see for yourself.
The next four weeks will be quite important for the markets and the direction. My advice, pay attention to the S+P 500 index, pay attention to the American consumer, and do your own due diligence. Happy investing.
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