The S&P 500 Is Getting Ready To Race Right Through 2,800

The S&P 500 Is Getting Ready to Race Right Through 2,800

Stocks had another active day on February 22 with the S&P 500 rising nearly 65 bps to 2,792. At this point, it would seem that the 1 to 2% sell-off I had thought we were going to get is not going to happen, or it occurred yesterday and it was much less severe than I anticipated. But then again that is why investing is such a humbling experience because it can make the best of look like fools at points. So a blow to my confidence, I won’t lie, a bit. I had felt so sure that we get a 1-2% pullback. It happens, we can be wrong.

What happens now? It has become clear to me that there are many signs that the S&P 500 is likely to power right through this 2,800 level. I did a video today on the premium service and went through many charts that suggest the global stock market will continue to rally. I will get into more detail over the weekend. Here is a link, you can get two weeks free when you sign up: Signals Strengthen For Stock Continuing To Rise

Russell 2000

The Russell is now near 1,593 and this a significant level for the index. If it can increase above that level it has room to go back to 1,700. There is very little to stand in the way of that happening should it break out.

russell,

Housing Index (HGX)

The housing index is also close to a big break out should it get over 295.

hosuing,

Copper

There appears to be an enormous appetite for copper with the metal rising to $2.94. I think what makes the big move in copper even more impressive is that it is happening without the dollar weakening.The fact that copper is strengthening on a strong dollar suggests that there is a real demand in the market place for the metal. Notice that copper peaked in the late spring around the same time that many of the export stock markets start falling. It tells us something about global demand, and what we have seen in global equity prices.

copper,

BHP

The mining giant BHP is breaking out of a one-year long trap. $57 is the next level of resistance.

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Disclaimer: This article is my opinion and expresses my views. Those views can change at a moment's notice when the market changes. I am not right all the time and I do not expect to be. I ...

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TheExitFirm 6 months ago Member's comment

The problem is that 2800 is a major area of resistance for the S&P. It reached that point, and reversed from it, three times in late 2018 - in Oct, in Nov and in Dec.