BALTIMORE (Stockpickr) -- Mr. Market's giving us a dizzying start to the first full trading week of September. Yesterday, the S&P 500 flirted with gains in the early morning hours, only to slide to significant losses by lunchtime -- and then reverse to a 0.7% gain by the closing bell.
There are a few implications we can pull from that bizarre price action right now.
That seesawing market behavior is coming on the heels of a constant barrage of economic data that's hitting Wall Street. Updates on everything from Eurozone debt woes to President Obama's jobs bill hit the market yesterday, and traders clearly don't know how to digest the data. Market participants need to reach a consensus on how they feel about the news -- which is just easier said than done in this case.
Related: 5 Rocket Stocks to Buy This WeekAt the same time, so-called "safety" investments (namely gold and Treasuries) have been looking less safe to investors; at least that's the conclusion that can be drawn from their lack of traction yesterday. The two asset classes have been trading in tandem for the last several months, so it's not a huge stretch that they're sputtering out together as well, even if the fundamental reasons for owning them are diametrically opposed. Despite the confusion on Wall Street, there are a handful of technical setups out there that could provide traders with breakout gains right now. Today, we'll take a look at them. Remember, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action 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 setups.
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