GREAT WEEK START. S&P500 HAS NEW ABSOLUTE HIGH.

It is true that finally ends the trading session right below the record, but in the middle of the session hit 1,859 new historical high the SP500. It was up with 22 points intraday. Gained 11 points finally and finish at 1,847, just right below the 15th of January record at 1,848. The SP500 turned into positive this year, the Dow is still in negative in 2014.

Here’s a list about yesterday and tonight gains – the green is ruling all around the globe:

• Dow + 0.64% 
• Nasdaq +0.69% 
• S&P 500 +0.64% 
• FTSE 100 +0.41% 
• DAX +0.54% 
• CAC 40 +0.87% 
• Nikkei 225 +1.44% 

First time the SP500 could not close on new historical high, but very close. It means the upside momentum is so strong and within few days after some kinds of consolidation the market needs to make a breakout from this level. Which news will push higher the index? I don’t know maybe no news. If the sentiment is enough strong many times there is no need any big news. Without news could go up the market up and makes a break out.

Technically on daily chart we are at the neckline on SP500 and if it is taken, the target would be at 1940. Sounds great, isn’t it? I don’t have a faintest idea when will happen. I am more modest than Mr. Birinyi who forecasted 2000 level on SP500 this year. That could be, but first needs to hit the 1,940 target.

The BFM Assets Team.