We did get the S&P 500 break out today that I noted last night. I do believe this break out not only sticks but continues higher on towards 2,900. The S&P 500 closed at 2,822 a strong close and well above the break out level around 2,812 I had tracked now for weeks.
Now 2812 will become support going forward and should serve as a solid support level in the future given how many times the index has failed at this point in the past. Additionally, the relative strength index has managed to pull back from being overbought, and that should allow for the index to continue to climb.
Amazon did break out today from that long-term downtrend. The RSI is also showing signs of breaking out of its long-term downtrend too. It doesn’t mean that Amazon is off to the races because it does have a hurdle to climb at $1,770. However, should the stock get over $1,770 then I believe it is back on its way towards $2,000. I do think this break out is for real this time.
Broadcom had an awesome day rising to a new record high. $285 should serve as strong support for the stock going forward.
Resistance for the stock comes at $58; a breakout takes the shares to around $62.
That is going to be it. More this weekend.
This article first appeared on Mott Capital.
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.