Courtesy of Doug Short.
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This article will serve as an update for my previous commentary, which asked the question Are Stocks Still in the Sweet Spot? I continue to monitor conditions which I believe collectively present a solid underpinning for the stock market. They are:
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Here is a review of the charts that confirm these conclusions and the continued sideways paths and benign natures of all but the S&P 500 Index, which continues to make new all-time highs.
Goldman Sachs Commodity Index 
10-Year Note Yields 
VIX 
US Dollar Index 
S&P 500 Index 
In conclusion, I give low probability to a major market sell-off amid such conditions, and believe the stock market will continue to have legs if the above observations remain intact. One final chart worth watching is the Philadelphia Semiconductor Index.
Philadelphia Semiconductor Index 
I previously expressed bullishness for it as the triple-top resistance of 2003-2007 (seen in red) was recently breached with momentum. If the index meaningfully breaks through the Fibonacci 38% retracement resistance level and conditions 1-7 above remain intact, I entertain the possibility for further gains in stocks barring any negative geopolitical event. In essence, for now central banks continue to have their way.
Dominic Cimino
Chief Investment Strategist
Financial Advisor
Preferred Planning Concepts, LLC
2800 South River Road #240
Des Plaines, IL 60018
Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Preferred planning concepts, LLC & Cambridge are not affiliated.
© 2014, Dominic Cimino of Preferred Planning Concepts, LLC (You can explore the services offered by Preferred Planning Concepts by viewing us on our website at www.ppcplanning.com) Any redistribution, reprinting, or reference to this chart or content is allowed so long as reference to the author and source is acknowledged.
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Any indices mentioned are unmanaged and cannot be invested in directly.
It must here be mentioned that technical analysis offers no guarantees of future price movements. Technical analysis represents an observation of past performance and trend, and past performance and trend are no guarantee of future performance, price or trend. The price movements within capital markets cannot be guaranteed and always remain uncertain.
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