Stock Market Outlook-S&P 500 Finishes Strong

When Friday started out it appeared we may have a flat week, but a rally into the close put the whole week in the positive. With that the index closes in on 1200, currently at 1194.

When Friday started out it appeared we may have a flat week, but a rally into the close put the whole week in the positive. With that the index closes in on 1200, currently at 1194.

The dip we saw on Thursday before finishing higher on the day bounced precisely at the trendline. This is an aggressive trend and given the proximity to 1200 that number will likely act like a magnet and a closer test is likely. Resistance comes in at 1200 and extends all the way to about 1310 before the skies clear again.

That said, there is no doubt the trend remains up. The longer term trendline is not in danger this week but the shorter term line which began in early February could easily be broken, triggering a test of the primary trendline over the next couple weeks. Strength was seen right into the close so the upper targets must also be looked at.

1200 is the next logical place to go. If that level is broken and can hold then the target beyond is 1225.

Given that the average weekly range of the S&P is approximately 31 points, this is a reasonable target and could potentially be seen this week if strength continues.

Cory Mitchell is an independent trader and analyst specializing in short to medium-term technical strategies. He is the founder of http://vantagepointtrading.com, a website dedicated to free trader education and discussion. After graduating with a business degree, Cory has spent the last six years trading multiple markets and educating traders. He has been widely published and is a member of the Canadian Society of Technical Analysts and the Market... More