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

Date Published:
Author: CML News


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.



  • 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.

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