Stocks Poised for New Highs Due to Euro QE

Stan Harley |

39.8___79.6_TD_Cycles_1_22.jpgI was anticipating the latest 39.8 trading day (TD) cycle to occur last Friday and it would appear we have it. The benchmark indices – despite their slowness in regaining traction to the upside – are nevertheless poised to push higher this week enroute to new all time highs. The S&P 500 today closed just above the 2,031.25 level – the second price octave above the all-important 2,000 level. This move is significant – it indicates to me the path of least resistance is again to the upside. Two other members of what I like to refer to as the “Big Five” – the New York Composite and the NASDAQ Composite – have quietly pushed higher without much fanfare. The NYA found solid support at 10,625.

NYSE_1_22_15.jpg 



NASDAQ_1_22.jpg

European QE Could Cheer Markets Higher

The financial press is focused on news due out tomorrow from the European Central Bank. Its president, Mario Draghi, is expected to announce the European Central Bank plans to commit something in the neighborhood of $1.2 trillion in quantitative easing. Given my expectation for a rising market condition on both sides of the pond, I suspect markets will cheer that news in whatever form it takes by pushing equity prices still higher. Assuming we get a continuation in my expected rally, my sights will then begin to focus on the next potential high. The March 11-18 time period is looking very interesting right now...

Outlook_1_22_15.jpg

 

 

 

 

 

 

Each month, Stan Harley publishes The Harley Market Letter, a newsletter that provides advanced technical analysis of stocks, bonds, and precious metals. This is the latest update to the Harley Market Letter for January. Want to learn more from acclaimed market analyst Stan Harley? Visit his site and subscribe to the full Harley Market Letter.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Comments

Emerging Growth

Lomiko Metals Inc.

Lomiko Metals Inc is an exploration stage company. It is engaged in the acquisition, exploration and development of resource properties. Its projects include Vines Lake project and Quatre - Milles…

Private Markets

XY Find It

Founded by serial entrepreneur Arie Trouw, XY Findables follows a single guiding principle: customers should never lose anything important again. With over 50,000 users around the world, more than 100,000…

MyForce, Inc.

As parents, we constantly worry about the safety of our loved ones. The media bombards us with incidents from across the nation school shootings, frequent assaults on campuses, and crimes…