S&P BREAKOUT

Huhhh. Finally...happened. It was tough, wasn’t it? After 8 days testing and hanging around the 1,850 level yesterday made the breakout and the futures are still stay over that key level. That elusive level seemed pretty strong resistance for almost two weeks. Today or Monday might be a backtest of the 1,850 support level, but the long trend now is clear. In this bull and bear battle, the bulls have won. The market from now wants to keep moving upward.

As we called in our yesterday blog that was the money burning period and now Mr. Market is in trending gear again. That sounds good. Honestly we should be happy and thankful for the last two weeks flat markets, against the horrible political news from each corners of the globe there are massive political instabilities. That was a good sign if in those turbulence days the market didn’t dive at all. In bigger perspective that ranging market was only a noise in the bullish uptrend and we are going to laugh on it in a few months.

You will see the following in the coming couple of weeks and few months:

• Nobody will care about the turbulence in emerging countries – Argentina, Ukraine, Turkey...etc. The market will totally ignore the emerging market headache. 
• Our target for S&P500 is 1,950 in the following months.
• The next few months until June – the summer vacation season - will be so eruptive and very bullish, only occurs some small correction for few days.

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The BFM Assets Team.