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4th Try at Breaking Above Resistance- Video

The market has seen a definite resistance line since it first tested 2000 back in July. It’s second attempt to break through came in September and the third attempt came in late November and early December and now it is trying to break out to the upside once more. Note that the second attempt was two months after the first and third was a little over two months but this test is only one month after the previous one with a very sharp rebound. In today’s post Chris Ciovacco will look at the possibilities. ~ Tim McMahon, Editor.

Can Stocks Get Over The Hump This Time?

By Chris Ciovacco, Chief Investment Officer for Ciovacco Capital Management, LLC

Stocks Have Stalled In This Area Previously

The recent push off the Fed meeting low has brought equities back to a familiar area. The chart of the S&P 500 below shows the upper blue line has acted as resistance three times in the last six months (see orange arrows).

S&P 500 - Overhead Resistance

Reaction To Economic Data

Investors’ reaction to this week’s economic data will most likely

determine the market’s short-term fate:

Tech, Industrials Side With Bullish Odds

This week’s stock market video shows numerous areas of potential resistance, along with recent positive developments in the technology and industrial sectors.

After you click play, use the button in the lower-right corner of the video player to view in full-screen mode. Hit Esc to exit full-screen mode.

 

Investment Implications – The Weight Of The Evidence

While the market’s appetite for risk has improved significantly in the wake of the last Fed statement, the economic and stock market bulls still have some work to do. The evidence we have in hand aligns with an equity-friendly investment stance. However, the market’s recent bipolar nature calls for flexibility until the bulls can take out overhead resistance.

About Chris Ciovacco

Chris Ciovacco has been serving investors for over 17 years. He is a regular contributor to Financial Sense, Seeking Alpha, and Safehaven. Mr. Ciovacco has been quoted in several media outlets, including the Dow Jones Wire Service, MarketWatch, Fox Business News, the Atlanta-Journal Consitution, and Nasdaq.com. Chris Ciovacco began his investment career with Morgan Stanley in Atlanta in 1994. With a focus on global macro investing, Chris uses both fundamental and technical analysis to assist in managing risk while looking for growth opportunities around the globe in all asset classes.

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