Hi there, and welcome back to CRI's S&P 500 blog.
As there has been little change to either the technical or fundamental picture over the past week, this will be shortened blog entry. For more on the current fund or tech backdrop please go through the recent posts to bring yourself up to speed.
So, as has been the case for a few months, the broader US stock market (as measured by the S&P 500 depository reciepts, SPY) has been trending higher. Investors ought to be long from the cross of the 13 EMA back above the 30SMA (near 112 area). Traders have been given three 'buy' signals since then lending support to the notion of higher prices to come. Traders latest 'buy' signal was registered when prices moved through the recent peak (at or near 130).
Currently we have a trader upside objective of 136.09 and I feel very confident that will be hit in the coming weeks if not days. Once that number has been hit, I wouldn't be surprised to see some sort of pullback as we are currently 7 points (or a little more than 5%) above short term support levels (13EMA). Additionally, the spread between the 13 EMA and the 30 SMA is getting very wide suggesting we are getting a little over done.
Be long, stay long and enjoy the ride!
That's all for this week,
Brian Beamish FCSI
The Canadian Rational Investor
the_rational_investor@yahoo.com
the-rational-investor.com
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