S & P Trend Up On Stock Chart

Respect my brother stock trading fighters. We may well be at the dawn of a new major bull uptrend.

Come again?

How can that be with so many people being without a job, banks being closed down, and home building taking a double douse to the downside?

Meaningful question. It does appear ridiculous provided you are a one-dimensional life form existing in the present.

However you are better than that. You were given the capability to visualize yourself existing in the future. That higher level of thinking is what makes you unique from other beasts and living organisms that can merely think in the present. Though I admit it’s not as cool as Back To The Future time travel, it can make you a great deal of moolah.

One of the most tricky concepts for amateur investors to take hold of is that the stock market is the future of the economy anywhere from 4 to 9 months. In other terms, all the movement taking place on the stock market at present is a bet on where we believe the economy will be 9 months from now. The stock market is yelling at us that in 9 months from now, the jobless rate will be lower, banks will no longer be failing, and home construction will pick up. The earnings season that just ended confirmed that with 70% of all companies posting earnings increases YOY.

Last Saturday I wrote on the subject of how, with the downtrend channel breakout, we don’t know what new channel or chart pattern will form as we don’t have an adequate amount of chart data yet. At this time with 1 week more of chart data, and zooming out on the stock chart to see the larger chart pattern, a configuration springs forth.

The S&P 500 has finished a Bullish Flag breakout.

Now bears and gold bugs will protest the formation and tell us that not enough volume is there for this to be a authoritative breakout but that is just not correct. Provided you go back and study the preceding Bullish Flag breakout we had on the S&P 500, you can appreciate that the volume that has accompanied this breakout is over 23% greater!

The Bullish Flag did a picture perfect 38.2% Fibonacci retracement of the bull move that started in March of 2009. A 38.2% retracement is a good retracement for a bull rally.

I am upgrading the S&P 500, Nasdaq, and Dow to that of uptrend.

Free expert chart analysis to assist you in establishing the direction of the major indices. Check it out at s & p trend

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