Can Stocks Break Out??

١٨ يوليو ٢٠٢٢

Stocks have rallied, with the S&P topping out at 3909. We have completely retraced the range, as recession fears and soaring inflation scared market participants last week causing a dip that tested lows at 3737. After breaking through this level and testing the next level below at 3714, we promptly pivoted, and retraced losses completely. However, we are running into resistance at 3909, and resistance is building confirmed by several red triangles on the KRI. The Kovach OBV has picked up a bit, but it will take more momentum to break through to higher levels. Resistance above is thin, and there are only three levels above before the 4000 handle. If we fail to break resistance, we should find support at roughly the midpoint of the range, at 3848, or again at lows at 3714.