Market Insider

Why bulls see a possible S&P breakout this week

Busy week ahead for markets

As the Fed meets and earnings news rains down on the stock market, some bulls are betting the S&P 500 could break out to the upside.

The stock market defied expectations that it would have a tough time in the past week, thanks to benign earnings news and China lowering its reserve ratio for banks at the start of the week. U.S. stocks surged, with the S&P closing up 1.8 percent for the week at 2117, a new closing high and a hair under its all-time intraday high of 2,120.

The Fed meets Tuesday and Wednesday, and there are some important economic reports like first quarter GDP Wednesday and Thursday's personal consumption expenditures data that includes an inflation measure. There are also dozens of earnings starting with Apple Monday, and including the biggest names in the oil patch, like BP, ExxonMobil and Chevron later in the week.