The Stock Market Playbook For The Next Week
The markets are nearing a key resistance level. This should be short term resistance but probably not the end of the move up. The level on the S&P 500 is 1207. On the SPDR S&P 500 ETF (NYSE:SPY) the level coincides perfectly with $121.20. This level happens to be the pivot high from August 17th, 2011. The likely scenario is a stall-out here for a day or two, then a push through it to the $124.00 to $126.00 area. Once this next level it achieved, look for a significant pull back in the markets.
Reading the charts is everything. It told of the pivot bottom in the markets three weeks ago and the targets of each bounce and pull back. Learning how to decipher the charts is like having a crystal ball.
Gains are wide spread in most sectors. Financial plays are leading the pack. They have been the most oversold. JPMorgan Chase & Co. (NYSE:JPM) is trading at $37.21 +1.00 (+2.76%), Caterpillar Inc. (NYSE:CAT) is trading at $88.20 +3.04 (+3.57%) and Apple Inc. (NASDAQ:AAPL) is trading at $389.07 +5.49 (+1.43%).