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Wednesday, June 20, 2018 9:05:20 AM
Correction? Why stocks actually look set to rally to new highs
By: MarketWatch | June 20, 2018
Critical information for the U.S. trading day
Dow futures have a small spring in their step today, hinting at a comeback after the blue-chip gauge’s six-session skid.
Maybe the good vibes come from the Dow finally breaking up with GE? Better off without that old ball and chain, and all that.
Or the nascent rally could stem from trade-war fears easing, though MarketWatch’s Mark Hulbert doesn’t buy that kind of explanation. And some billionaire bears, meanwhile, sound convinced that we’re at the start of a “very major” correction for stocks.
What do the charts say? They suggest a rally is nigh for the S&P 500, according to our call of the day, which comes from technical analyst Mark Arbeter.
“On the daily ‘500’ chart, note the backtest of the breakout area near 2,740,” the Arbeter Investments president writes in a note to clients, as he shares the illustration below.
“With this reset, the index should now be able to take out all that resistance near 2,800 on its way to new highs.”
In other words, the S&P has found buyers after falling to what Arbeter views as a key level (2,740), and its next move could be a leg up to a fresh all-time high. The index closed around 2,763 yesterday, after dropping as low as 2,743 intraday.
As he puts it: “I was looking for a pullback to the 2,740 region, as there is both chart and trendline support in that zone.”
Arebeter suggests we’ve just seen a pause that refreshes. The market had “clearly needed a reset,” he writes, as the mood among traders on Twitter, for example, had become too upbeat.
Schwab’s strategists are making chipper comments as well, following the recent global selloff.
“Trade isn’t the only factor driving equity markets,” that shop’s scribblers write. “The rest of the economic and corporate earnings picture is bright and offers a potential counterweight to trade-associated downturns.”
https://www.marketwatch.com/story/correction-why-stocks-actually-look-set-to-rally-to-new-highs-2018-06-20
• DiscoverGold
By: MarketWatch | June 20, 2018
Critical information for the U.S. trading day
Dow futures have a small spring in their step today, hinting at a comeback after the blue-chip gauge’s six-session skid.
Maybe the good vibes come from the Dow finally breaking up with GE? Better off without that old ball and chain, and all that.
Or the nascent rally could stem from trade-war fears easing, though MarketWatch’s Mark Hulbert doesn’t buy that kind of explanation. And some billionaire bears, meanwhile, sound convinced that we’re at the start of a “very major” correction for stocks.
What do the charts say? They suggest a rally is nigh for the S&P 500, according to our call of the day, which comes from technical analyst Mark Arbeter.
“On the daily ‘500’ chart, note the backtest of the breakout area near 2,740,” the Arbeter Investments president writes in a note to clients, as he shares the illustration below.
“With this reset, the index should now be able to take out all that resistance near 2,800 on its way to new highs.”
In other words, the S&P has found buyers after falling to what Arbeter views as a key level (2,740), and its next move could be a leg up to a fresh all-time high. The index closed around 2,763 yesterday, after dropping as low as 2,743 intraday.
As he puts it: “I was looking for a pullback to the 2,740 region, as there is both chart and trendline support in that zone.”
Arebeter suggests we’ve just seen a pause that refreshes. The market had “clearly needed a reset,” he writes, as the mood among traders on Twitter, for example, had become too upbeat.
Schwab’s strategists are making chipper comments as well, following the recent global selloff.
“Trade isn’t the only factor driving equity markets,” that shop’s scribblers write. “The rest of the economic and corporate earnings picture is bright and offers a potential counterweight to trade-associated downturns.”
https://www.marketwatch.com/story/correction-why-stocks-actually-look-set-to-rally-to-new-highs-2018-06-20
• DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
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