The Stock Market Is Poised For A Big Break Out Led By These 8 Stocks

Subscribe to The Free Market Chronicle and join the 2,713 subscribers getting it for FREE!

MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN AAPL, ACAD

The stock market put on a good showing this week with the S&P 500 rising 1.73% and the NASDAQ rising 2.42%. The two indexes find themselves in a favorable position to start the week as well, with the major averages are on the cusp of what could be a big break out.

S&P 500 (SPX, SP500)

The S&P 500 closed the week right on technical support at 2,532, as we noted yesterday. I think we can break out this week, and I think that could send the index higher to around 2,620, a gain of about 4% over the coming weeks. The relative strength index looks like it may have put in a double bottom, which is a reversal pattern. The RSI has been trending lower since last January when it reached overbought level. The double bottom suggests a reversal of that downtrend. If the RSI can rise above 55, the downtrend will be broken and that means the index will race higher.

NASDAQ

The NASDAQ closed in on-resistance as well and could rise to around 7,000. The RSI in the NASDAQ is showing a similar pattern as the S&P 500.

Russell 2000

The Russell could rise to around 1,500 in the coming weeks, again a similar pattern as the other indexes.

Housing

Here is another reason to be bullish, the housing index HGX which is flashing positive signs, and could rise back to roughly 296. Remember I noted that when the housing sector broke down, it took the market with it. This Is The Sell Signal That May Have Tanked The Stock Market

Apple (AAPL)

Apple could be one stock to help the market out, yes Apple. The stock has a technical gap now that needs to be filled at around $155.

Biotech

Biotechs are on fire again too after that big Bristol Myer acquisition of Celgene; the XBI could rise to around 79. Plus this week is the JP Morgan Healthcare conference.

Gilead (GILD)

Gilead is showing some signs of life and its chart suggests an increase to $72.

Acadia (ACAD)

If Acadia can get over $18.50, it could move higher towards $21.50, again.

Regeneron (REGN)

Regeneron could be on the rise to $440.

Square (SQ)

Square is getting close to a breakout but needs to clear a downtrend which is in place since October when the stock was $100. Should the stock rise above $62 it could increase to around $83.