On The Verge Of A Bullish Breakout - John Rothe | Portfolio Manager, Quant, Tech Geek, And Sometime Superhero To My Kids

On The Verge Of A Bullish Breakout

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:

On the verge of a bullish breakout

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compared to earlier this week:

4/23/12 Pattern S&P 500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Volatility, as measured by the VIX, has also started to decrease as traders are starting to buy back into the market:

Breakdown in the VIX (aka the fear gauge)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

vs earlier in the week:

VIX as of 4/23/12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

Happy trading!

-John

 

 

 

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