Stocks broke the all-important level of 3,000 on the S&P 500 yesterday. The market is now forming a triangle formation.
The breakout is likely to ultimately be up. Breadth leads stocks and breadth is in a clear rising channel, having recently risen to new all-time highs.
Until we get a breakdown from that channel, the likelihood of a severe breakdown remains small.
Big picture I believe stocks are preparing for a blow off top that will take the S&P 500 to 3,400 or even 4,000. After that, comes the bear market.
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research
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