WINDERMERE, Fla. ( Stockpickr) -- The entire U.S. stock market is on the verge of a major breakout.
The bears aren't going to want to hear this, but all three major U.S. indices are within a stone's throw of taking out their 52-week highs. To put things even more into perspective, this was the best first quarter for stocks since 1998.
The market is defying all logic as it continues to rise in the face of so many negative headlines. The real winners so far have been the dip buyers, who continue to be rewarded with ridiculous profits. Not even skyrocketing crude oil prices or a new war raging in Libya has been able to knock this market down. And as a trend trader, I am going to stick with the trend and continue to stress that the probability for higher stock prices is high.
The path of least resistance for the market is up. That doesn't guarantee it will go up, but it does give us an edge on how to play the market from here. Of course, having an edge doesn't mean throwing sound money management or protective downside hedges out the window. You need to be prepared for anything and keep your stops in place.
The area to watch on the Dow Jones Industrial Average for an official breakout now is a close above 12,391. On the S&P 500, the breakout levels to watch are for a close above 1,332 and 1,344, and on the Nasdaq we also need a close above 2,800 and then 2,840.