Stocks hit upper resistance on Friday and rolled over. The decline wasn’t particularly strong however so the door remains open to a breakout to the upside here.
Support (blue line) is key here. If we hold it, the odds of a breakout to the upside greatly improve. But if the blue line break, we could see some truly intense selling down into the 2,800s.
Big picture, as I have been warning clients for the last month, a blow off top is coming. A breakout to the upside means stocks rising well above 3,100 and possibly running as high as 3,400.
We recently told our clients about a unique way to play the coming blow off top. In the last 10 years this investment has more than tripled the markets returns. And we expect it to absolutely EXPLODE higher as the S&P 500 rises to new all time highs.
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Chief Market Strategist
Phoenix Capital Research