Thursday, January 17, 2013
Until the S&P 500 Breaks This Level, Don’t Expect Much
Stocks will most likely trade sideways until the September high at 1,474.5 is exceeded
New York, Jan.17, stock picks .- On Wednesday, stocks opened mixed, traded mixed, and ended mixed. Boeing (NYSE:BA) fell sharply as problems with its new Dreamliner 787 worsened, but Apple (NASDAQ:AAPL) offset BA’s losses with a 4.15% recovery. However, the Dow backed off for the first time in six sessions.
Note that momentum is falling and confirms that the formation has stalled. But the chances of a breakout are still high as long as the index can hold within its current narrow-ranging top. A breakout target for the S&P 500 is at around 1,500, but we are in desperate need of enough confidence from buyers to push ahead....