BALTIMORE ( Stockpickr) -- With broad-based indexes at key technical levels this week, we're witnessing a potentially volatile time for the market. Once again, it's all going to come down to how Wall Street digests the bevy of fundamental data being thrown at investors to start November.
Right now, the S&P 500 index is testing a push above its 200-week moving average, a resistance level that's smacked shares lower in the past. A move above the 200-week moving average wouldn't be without precedent -- the Dow broke above that level in October -- but it'll be difficult given the fact that momentum levels are looking overbought right now.
>>Also: 6 Stocks Gearing Up to Break Out
That doesn't mean that we won't see higher levels for stocks to end the year -- only that investors will be treading on thin ice until the S&P 500 clears resistance. The broad-based index is sitting on the heels of a rally not seen since April, after all. We'll want to see stocks cool down with some sideways price action to avoid a snap backwards.Even with all of that in mind, this week, we're taking a look at three promising technical setups to wring maximum upside out of the market. >>Also: Must-See Charts: Sprint, Comcast, Broadcom Technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's chart patterns and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution. Here's a look at this week's potential trades.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV