Equities for the most part this year have enjoyed very impressive gains especially in the commodity space and in tech land. So with 3 trading weeks left in the year and with Christmas and New Year’s affecting the trading mix, how much higher can stocks go? Technically speaking if you take a look at the S&P 500 the broadest index of the big 3 you can see from the chart it is in a potential breakout mode, the same rings true with the Nasdaq, and the Dow appears to be setting up for a breakout as well. What this perma bull needs to see is significant volume in order to confirm a breakout. With the holidays approching typically volumes ebb, however if the markets are able to experience a big volume day to the upside, this would confirm the breakout and we then could be in for a real Santa Clause rally 🙂 Let’s see what happens and good luck to all.
Have a great week.