Stocks are taking a bit of a breather here, having broken to new all-time highs.
Having broken out of the triangle consolidation pattern (purple lines) to the upside, stocks touched the top line of the bullish channel (blue lines) that stocks have been following this year. This is a good place for stocks to take a breather.
In the bigger picture, the S&P 500 has broken its expanding pattern to the upside on the monthly chart. This is MASSIVELY bullish and opens the door to a run to the mid-3,000s.
With the Fed now engaged in QE to the tune of $60 billion per month, and corporate buybacks still holding strong, there’s a “floor” under stocks so to speak.
What I mean by this, is that there is a degree of guaranteed BUYING POWER in the markets here. It will take TREMENDOUS selling pressure from the bears to overcome this.
With that in mind, the door is now open to a melt-up bubble in stocks with the S&P 500 rising to 4,000 or even 5,000.
We’re about to publish an Executive Summary on how to play this move.
We’ve already identified a unique play that could more than TRIPLE the performance of the S&P 500 as the market goes into the Mother of All Bubbles.
This Executive Summary will be available exclusively to subscribers of our Gains Pains & Capital e-letter. To insure you receive a copy when it’s sent out, you can join here:
Best RegardsGraham Summers
Chief Market Strategist
Phoenix Capital Research