The Bulls Break Loose As Stocks Resume Their Path Higher

S&P500  (SPY)

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.

S&P 500, spx

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.

S&P 500 daily

Amazon (AMZNWealth Strength IndexAMZN is Moderately Flat and trending Up)

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.

amazon, amzn

Broadcom (AVGOWealth Strength IndexAVGO is Moderately Flat and trending Up)

Broadcom had an awesome day rising to a new record high. $285 should serve as strong support for the stock going forward.

broadcom, avgo

Qualcomm (QCOMWealth Strength IndexQCOM is Moderately Flat and trending Up)

Qualcomm had a strong day after a jury found that Apple violated 3 of Qualcomm’s patents.  The stock continues to go, and its no wonder why the options continue to see so much bullish activity.

Resistance for the stock comes at $58; a breakout takes the shares to around $62.

qualcomm, qcom

That is going to be it. More this weekend.

This article first appeared on Mott Capital.

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