I 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.
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...
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