This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: More Room to Run

NEW YORK ( TheStreet) -- The charts appear to be coming together for the bulls.

Mark Arbeter, chief technical strategist at S&P Capital IQ, made the case in commentary on Friday that the S&P 500 could have another 10%-plus run in store for the second quarter.

"One ultra-bullish interpretation of the S&P 500 based on both the current price structure as well as long-term price action and multiple trendlines shows a potential for the index to climb up to the 1,550 region by the end of the second quarter or early in the third quarter," wrote Arbeter.

"Sometimes, a plethora of trendlines as well as other technical tools seem like they are all drawn to one point in the future, and we believe this is one of those times," he added.

> > Bull or Bear? Vote in Our Poll

Arbeter began calling for a pause in stocks in early February when the major U.S. equity indices were up 20%-plus off the October 2011 lows.

Although there was never a dramatic drop, he did document what he termed an "invisible pullback" during March, noting a 6% decline in the Dow transports from late February through early March.

The mild selling at the end of March was also a good sign for Arbeter.

"The major indices are pausing once again and have had a tough time making any progress over the past couple of weeks," he wrote. "A fair amount of smaller indices and sectors have actually made little progress over the past two months. We view these price consolidations as positive, and believe once they run their course, the market will be able to have a rally into May or June before we see the chance for anything major on the downside."

The detail on why the S&P 500 may shoot up to 1550 in the second quarter gets a bit, well, technical, so here's the breakdown from Arbeter.

"First off, the highs from 2000 and 2007 both come in near 1,550, and therefore, represent key long-term chart resistance," he wrote. "Trendline resistance, off the highs in April 2010, February 2011, and April 2011, comes in at 1,550 when projecting out to the June/July period. Trendline support, off the lows in October, November, and December 2011 crosses the above-mentioned trendline at 1,550 in the June/July period."
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
GRPN $4.29 -4.67%
AAPL $107.72 -4.47%
FB $87.23 -2.46%
GOOG $597.79 -3.31%
TSLA $238.63 -4.19%

Markets

Chart of I:DJI
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASDAQ 4,636.1050 -140.4030 -2.94%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs