S&P 500 Index

SPX
5,530.42
+25.42 (+0.46%)
StockTwits Share  Twitter Share  Facebook Share

Technical analyst argues explosive stock market rally could be on the horizon





Date Published:
Author: CML News

Lede

Mark Arbeter, a technical analyst, believes that the ingredients are in place for an explosive U.S. stock-market rally, but the bears may not have been vanquished just yet.

 

Summary

  • The S&P 500 index is moving towards two key resistance levels on the price chart as it rallies off its March 13 intraday low at 3,809.
  • A bearish wedge pattern had put the S&P 500 on track for a downside target of 3,656, but it bounced before reaching that point.
  • Stocks rallied on Thursday, with the S&P 500 up 1.3% and the Dow Jones Industrial Average up 1.1%.
  • The S&P 500 is near a test of resistance around 4,220, which, if taken out, would mark three higher highs and two lower lows off the October bottom.
  • The next resistance cluster is in the 4,300 area, which marks the high from August and a 61.8% Fibonacci retracement of the bear market.
  • A break above the 4,300 zone could send the bears into hibernation and lead to another round of FOMO.
  • However, a consistent move higher that catches many with too much cash and is inhospitable to letting investors waiting for a pullback into the market has not been seen off the October low.
  • A long-term technical resolution to a new bull market remains in question.

Stock Charting as a Science

CML Pattern Finder is the answer. It takes the guesswork and time out of understanding stock charts and screening for traders.

Transform a standard stock chart into a trading plan — instantly. We mean that - it takes less than 3 seconds for the platform to take a stock chart and apply algorithms to show congestion, support, resistance, and moat, importantly target zones.

You have to experience it to believe and experience is just a (free) click away below

Leverage the market like a pro, and keep leveraging it, all for less than $1 a day.


We are offering a huge discount on this page: Pattern Finder: The Next Era of Charting