Courtesy of John Nyaradi
Today was another low volume rally that reached the top of the recent range on the S&P 500, as once, again, markets “hit the ceiling.
In the chart above, we can see how the S&P 500 has snapped back to the 1330 level where it stopped today. A break above here would constitute a “double top” breakout and a new “buy” signal, indicating the potential for higher prices ahead.
We are at a point of significant resistance and so will be carefully watching developments from here. As mentioned in Sunday’s email, we have a storm of data tomorrow and Friday which likely will tell the tale.
All the best,
John
Disclosure: Wall Street Sector Selector actively trades a wide range of exchange traded funds and positions can change at any time.
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