Breakout or Rounding Error?

posted Aug 27, 2014, 11:23 AM by Katie Shook

The S&P500 set an all-time record and managed a whopping $0.02 above the $2000 mark at close yesterday.

Legalistically this is a close above 2000.  Practically speaking, it’s too close to call.  And realistically speaking, the pattern is pretty weak.  I’m still looking for a temporary pull-back to the 1980′s — or perhaps even lower (like the 50-day moving average in the low 1960′s) — before we get enough consolidation to break out for the next leg up.   We’ll see where we fall.  Don’t forget:  we’ve talked about numbers as high as <gulp> 2160 for this year.  A lot of things would need to go right – and I wouldn’t exactly call it probably – but there is at least a remote technical rational for the markets to head there.

The fact that there are still both bulls and bears out there is a good sign.  About the time you start to get a gelling consensus my spidey sense starts to tingle…

Daily Digits

Daily Digits 8-27-14

Weekly Estimated Range

Weeklies 8-27-14

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