S&P 1400 Breakout Tomorrow?
Could be. The market closed with improved momentum and volume today. And if the dollar keeps moving up (dollar vs. euro chart), the rotation from commodities into financials that surprised everybody today will likely continue.
The last three times the market came up to 1400, it could only hang there for a day or two before falling back. This time, it has been hanging around for five days. So, I think the chances for a breakout are much better this time.
But will it be a false breakout? Maybe. A close above 1400 will be nice, but the S&P 500 will need to close above 1440 or so in the next few days to confirm the breakout. During that time, we will no doubt be getting lots more bad economic news, so a close above 1400 tomorrow won’t be cause for celebration just yet.
