Stocks climbed on Friday with optimism prevailing on Wall Street ahead of the big EU summit that some believe could go a long way in removing one of the biggest overhangs for markets – the financial crisis.
In recent days bulls seemed to have had the upper hand and successfully pushed the S&P higher, even on days when financials markets overseas performed rather poorly.
However, now the S&P 500 is flirting with the top end of its trading range with 1230-1250 a previous level of strong resistance.
How will you know if the market is about to break out?
Trader Steve Grasso says put 1257 on your radar and watch the S&P closely at it approaches that level.
”1257 is flat on year,” he explains. “If we can hit that level, buy programs will erupt.”
Trader JJ Kinahan agrees that will be a key market ‘tell.’ However he also says as the S&P approaches the 1245 level he expects resistance to be very, very strong.
”Until we get above 1245 I find it hard to say buy. Monday and Tuesday will tell the tale if we should be bullish.”
What do you think? We want to know!