Friday’s price action was very positive. As we discussed late Friday to our Forbes readers, the S&P 500 held the 1285 level, which was very impressive off the back of Thursday’s gains. The longer we hold this range, above 1237, the more support we will build. Ultimately, this support will be gained by excitement for a year-end rally. However, that does not mean we would recommend holding onto our longs at this juncture. Last Sunday, we pinpointed our 1275 price level (1 to 3 weeks) with a high probability of reaching 1300 in the short term. As all of our readers know by now, we put out a buy call on the S&P 500 on Sunday, October 2nd at 1090. The preceding Monday we hit a intraday low of 1090, to close above 1100. For our FREE S&P 500 New Letter visit: www.thechartlab.com
Okay, so enough grand standing. Do we anticipate a test to 1328 with this current trend up? Yes. Read our last article. As we have pointed out in our last three articles, we are in the excitement/relief stage. Shorts are still apprehensively covering short positions and long only manager’s fear missing the next 4% to the upside. This momentum is intact for the next couple weeks.
Let’s take a look at some technology leaders and their technicals.
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