Breaking Out Of The Channel

The Dow hits new highs, S&P 500 & Nasdaq not far behind.

The S&P has rallied 31 points off of the Tuesday’s lows when Don Jr.’s emails hit the wire. Yeah, it actually sparked a sell-off, but like all sell-offs, it was short lived. Instead, stocks are staring down the barrel of all-time highs, and the Dow has already attained that feat.

Ideally, I’d like to see it break us out of the box pattern that we have been stuck in for almost 2 months now. If that happens today, then Friday becomes ultra important for the sake of follow through.

At that point, we may actually have, in fact, a new leg up in the market as a whole, and it would give me reason to get more long on this market.

Also worth noting, was the 20-day moving average being gapped up on, following multiple attempts of late to break through. You also have the declining channel that broke yesterday too.

Over 59% of stocks are trading above their 40-day moving averages, the VIX is at 10.3 and ready to go sub-10 today if the market continues its rally from yesterday.

S&P 500 Technical Analysis