While we make decisions based on observable evidence (rather than forecasting), it is always a good idea to understand bullish and bearish possibilities.
One bullish scenario that could enable the broad market to break from its recent ten-month period of consolidation (see red arrows in chart above) goes something like this:
The Last Shakeout Before A Breakout?
The chart below shows what appears to be a “shake out of fear” pattern over the last eighteen days. All of the above means little if the S&P 500 cannot break above and hold above 2117.
As outlined in detail on May 8 in our weekly stock market video, the weight of the evidence still favors a bullish breakout over a bearish breakdown. Could the bears gain some traction? Sure they could, but we need to see evidence, rather than anticipate what may happen.
