S&P 500’s Highest Close Since July Could Fuel More Buying
Finance Tuesday, January 10th, 2012
By: John Melloy, CNBC.com
The S&P 500 [.SPX 1292.08 11.38 (+0.89%) ] closed above its closing high hit last October, a technical breakout that could spark more buying, chart analysts and traders said. How much buying, though, is subject to debate.
It could go “a lot higher,” said Dennis Gartman, whose The Gartman Letter is usually filled with analysis of charts. “I’d like to see a bit more volume, but I’ll take what I can get.”
Now at the highest since July, the benchmark leaves behind a 2 ½ month trading range it was trapped in as concerns about the European financial crisis continued to push it down.
The market is pricing in an improvement in the U.S. economy and good results in the upcoming earnings season, traders said.
“We are probably looking at new all-time highs on the S&P 500 by the end of the year,” said Adam Grimes, chief investment officer for Waverly Advisors.
“There is significant technical support and justification for such a rally, and we are now in area that justifies a more aggressive stance on risk, as opposed to our hands-off attitude of the past several months.”
To read more, visit: http://www.cnbc.com/id/45946824
Short URL: https://reteaparty.com/?p=5470
