This week will be technically significant for the S&P 500, according to one well-followed analyst. Here's why:
Friday will be a significant technical day for the S&P 500, according to one well-followed analyst.
Jeffrey Weiss, Chief Technical Analyst at Tejas Securities Group, believes that if certain technical levels in the S&P are sustained until Friday, there are three reasons it will move higher from there.
Weiss’ Three Reasons the Market Can Move Higher:
1. The trend line has remained intact since 2008
Weiss says: “Every top has been on the same trend line since November 2008 on a daily closing basis. The weekly and monthly charts both close this week – the last one of the first half of 2013. Look for the weekly chart to close above 1,580 and the monthly to close above 1,555.”
2. The long-term trend has not been infiltrated
Weiss says: “Even though we achieved a top and it’s bearish short-term, we don’t have enough evidence that the long-term trend has been infiltrated.”
3. The long-term trend is holding more than shorter-termed trends
Weiss says: “Despite near- and intermediate-term damage, the long term charts don’t show the same degree wear and tear as the shorter terms.”
To watch the Talking Numbers interview with Weiss and to hear the fundamentals take by CNBC contributor Steve Cortes, Founder of Veracruz TJM, watch the video above.
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