The SPX has broken out to a new high along with improving breadth and o.k. volume.
Breakouts from shorter term periods of price compression can sometimes trap traders with a
head fake, so it might pay to be a little cautious especially since the SPX is up about 2.8%
from its 25 day m/a for a moderate overbought on a price momentum basis. Positive reversals
in both RSI and MACD are welcome developments. SPX Daily
I am following this uptrend off the the mid - Oct '14 base which I regard as a fresh starting
point after the end of QE 3 sell - off. The range of the trend I am using is now set at 2020 -
2130 which allows for more short term upside. (This view is entirely at my discretion and
does not follow strict technical analysis protocol).
- Peter Richardson
- Retired chief investment officer and former NYSE firm partner with 50 plus years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!