Will the S&P 500 Break Above 1900?


I regularly present the S&P 500 chart to show how cyclical the overall market is. The index has for much of the recent era shown a regular up and down cycle, averaging about 1-1/2 months. I've updated the S&P's chart with markers of the most recent cycle lows, on both the daily price chart and the Stochastics chart.

The S&P 500 was not able to close above 1900 on its last attempt early last week. You know how professional traders are. They take these round number levels, and any failure to conquer them, very seriously. Now look at the cycles on the above chart. The Stochastics are indicating the index is, on average, closing lower in its recent range. Instead of rallying back after minor pullbacks, declining Stochastics suggest sellers are more aggressive than buyers.

This index could consolidate for several more weeks, or it could immediately resume an upward path. But notice the Stochastics do not have a tendency of partial declines. When the S&P 500 weakens and the Stochastics begin to fall, it tends to finish what it started.

Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day.  To find out more, please click on the following link: www.markettamer.com/seasonal

By Gregg Harris, MarketTamer Chief Technical Strategist

Copyright (C) 2014 Stock & Options Training LLC

Unless indicated otherwise, at the time of this writing, the author has no positions in any of the above-mentioned securities.

Gregg Harris is the Chief Technical Strategist at MarketTamer.com with extensive experience in the financial sector.

Gregg started out as an Engineer and brings a rigorous thinking to his financial research. Gregg's passion for finance resulted in the creation of a real-time quote system and his work has been featured nationally in publications, such as the Investment Guide magazine.

As an avid researcher, Gregg concentrates on leveraging what institutional and big money players are doing to move the market and create seasonal trend patterns. Using custom research tools, Gregg identifies stocks that are optimal for stock and options traders to exploit these trends and find the tailwinds that can propel stocks to levels that are hidden to the average trader.

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