Triple Stock Index Check on Breakouts to New Highs

Dec 7, 2016: 2:13 PM CST

Bullish repbalancing plus a powerful short-squeeze is boosting the US Equity Market to all-time highs at the beginning of December.

Let’s get a quick check on the S&P 500, Dow Jones,  and the NASDAQ to see which levels are key now:

The S&P 500 isn’t the strongest market right now; it’s actually the Dow Jones.

However, our focal points remain the 2,120 level, the new 2,185 pivot, and the new highs through 2,200.

We’re moving into a new bullish phase/swing as we trade toward the end of 2016.

Speaking of relative strength, here’s the non-stop relentless violence that’s boosted the Dow to all-time highs:

Beginning at the 18,000 critical pivot level (ahead of November’s election), funds have been aggressively buying Dow stocks.

The index shot from 18,000 to 19,000 in a week and how we’re seeing price shatter the 19,000 target toward 20,000.

Dow 20,000.  Did you think it would be this close this soon?

Finally, the NASDAQ has been the weakest of the three big US Stock Market Indexes:

The NASDAQ – a tech-heavy index – remained stagnant from August to present.

It is the only major US Index not yet at new swing highs (even the Russell 2000 is at new all-time highs).

Technology stocks have been under distribution/selling pressure which held back the advance of the NASDAQ recently.

Nevertheless, focus on the 5,400 level as key for the future along with 5,000.

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Corey Rosenbloom, CMT

Afraid to Trade.com

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1 Comment

One Response to “Triple Stock Index Check on Breakouts to New Highs”

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