Here is Why Stock Market Bulls and Bears are Set for an Epic Battle
As the Dow Jones Industrial Average sets records day after day, the stock market reaches a historic turning point.
The Dow Jones Industrial Average (NYSEARCA:DIA) has gained 613 points, 4.4%, on a closing basis since February 25th, in a liquidity fueled rally that has yielded year to date gains of 9.8%. The S&P 500 (NYSEARCA:SPY) closed on Friday at 1551, just 14 points, 0.9%, below its highest close on October 9, 2007.
On My ETF Radar
In the chart of the S&P 500 (NYSEARCA:SPY) above, we can see how the index now approaches overbought levels with short term momentum turning positive. Recent action has been largely on low volume and in the face of significant fundamental headwinds. The S&P 500 (NYSEARCA:SPY) faces multi-year resistance at current levels and approaches those from overbought levels.
The S&P 500 (NYSEARCA:SPY) and entire U.S. stock market now stand at a significant turning point, a triple top stretching back to 2000. A sustained break higher sets the stage for yet higher prices ahead while a failure here would open the door to a potentially significant decline.