Earlier this week, I spoke about the bullish possibilities of the US stock market and how the current multi-month upward trend still has more time to continue its climb – see: Is The 2012 Stock Market Rally Over?
Fast forward to today – we can see the US stock market is on the verge of breaking out of the sideways pattern that it has been stuck in for the past month:
Compared to earlier this week:
Volatility, as measured by the VIX, has also started to decrease as traders are starting to buy back into the market:
vs earlier in the week:
Traders and investors have been using the recent pattern as an opportunity to add to their equity portfolios. Strong earnings from Apple and the possibility of a more vocal Ben Bernanke (as we get closer to Election day) should continue to help the market.