Insights & Advice

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Viva La Resistance!

Two weeks ago, in the Capital Ideas article “A lower high and icicles,” I wrote that “…we’re still in a cyclical bear market until proven otherwise. If we can break the S&P 500 above the 2,740 level, its 40-week moving average, I’ll feel more comfortable [that the stock market’s rally is sustainable].”

Last week the index hit that resistance level (2,738.98 to be exact) but couldn’t break through. That failure looks merely technical in nature so far, as we are yet to see material damage done to the short-term rally off the Christmas Eve lows.

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