zt get ready for breakout 5/27

ice_tea

Stocks continue to climb higher and higher, and despite some big sell-off days, the predominant trend since March 9 has been up, up, up.

Now, over the past couple of weeks the market has been in somewhat of a consolidation mode, meaning that stocks have been building what's called a technical base right at the 900 level of the S&P 500. Meanwhile, the move higher in the S&P 500 along with the sinking of the 200-day moving average now has brought stocks close to a new bull market breakout.

stocks are trading just below the 200-day moving average (red line). If we see the value of the index break above this key technical indicator, we could be looking at a very big surge in stocks.

How big?

Well, if the index moves above the 200-day average -- particularly on strong trading volume -- I think we could be in for a 15-20% rise above current levels. That would put the S&P 500 well into the mid-900s, and possibly well beyond.

licai5688