Market Review: Market Flashes A Buy SIgnal

This August has certainly been a departure from the topsy turvey we experienced last summer.  That being said their has been some evidence the markets especially the S&P 500 will continue to march higher over the next couple of weeks

S&P Daily Chart.

This chart does show that the SPY did break above our April high ever so slightly and the volume was the strongest volume it has seen in the last 6 or 7 trading sessions,  I would anticipate in the absence of Europe worries we should continue this shimmy up for the next week or two until we get into September when most everyone come off of holiday and the Fed and ECB will be responsible for making their intentions known as to how they will handle policy relating to the markets.



S&P Weekly Chart

When I pulled up a weekly chart of the SPY  I was curious to see what kind of percentage move it makes after a breakout.  I went back a few years and I found that most breakouts move about 6% we have had a few going back to last year and in 2006 and 2007 where they were over 10%, but on the whole its been about 6%.  With the condition of the economy, (recovering slowly) and having to pay attention to Europe my best guess would be to see  a 6% rise based on how the market has moved the last few years after a breakout. 



Next week we should continue to see light volume, price action pretty quiet with maybe an occasional big day, and the market should make some new highs. 

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Disclaimer: This article is intended to be informative and does not constitute a buy, hold, or sell recommendation., and should not be construed as personalized advice as it does not take into account your specific situation or objectives