the Coming Market Meltup
Stocks are roaring higher.
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. The long-term chart makes this clear especially with that breakout to the upside.