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The S&P 500 May Reach 3,030 Over The Next 2 Weeks

The S&P 500 May Reach 3,030 Over The Next 2 Weeks

This column is my opinion and expresses my views. Those views can change at a moments notice when the market changes. I am not right all the time and I do not expect to be. I disclose all my positions clearly listed on the page, and I do not trade my account on the stocks spoken of in this column unless fully disclosed. If that does not work for you stop reading and close the page. Do not bother me or harass me.

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Michael Kramer owns IWM Calls

The S&P 500 left off on the cusp of a major a break out last week, and so did the Russell. This week, I think the data comes in that suggests the global economy is on the rebound, and earnings continue to come in strong. It will send the S&P 500 into uncharted territory

S&P 500 Break Out (SPY)

The chart of the S&P 500 is fascinating when you look at this new one I drew up. I do not believe this is a coincidence either. Off the 2310 low, the S&P 500 rose higher in the three consecutive series of about 170 points, followed by periods of consolidation.

When the S&P 500 crossed above resistance at 2,860, there were three series of jumps of around 130 points. It would suggest that next move higher for the S&P 500 is to 3,031? If we see the fourth series. Or perhaps a jump to 3030, or 2,990 if we drop to a rise of just 90 points. Get it: 170-130= 40 points 130- 40 points = 90. I am using a starting point of 2,900 for this recent rally.

Based on the timing it could happen within the next 2 weeks.

Russell (IWM)

Meanwhile, we can also see that Russell is on the verge of a significant breakout. I redrew the chart, and you can see the giant ascending triangle. A break out sends the index higher towards 1,683.

russell, 2000

That’s it

-Mike

Photo from Flickr

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