The SP500 has been stuck in the range between 1170-1185 for the last couple of weeks while the Nasdaq broke to a multi-years high. The tech sector has been carrying the weight for the SP500 while the financial have been struggling. Looking at the price actions of many stocks from different sectors, it appears the market is ready for some shake and bake with the climatic conclusion of the mid-term election and the Fed’s QE2 announcement.
My stance is no matter what the outcome is from next week’s activities, the market is biased to head higher after the shaking is completed and 1220 level is still the upside target for the SP500. Until the dust is settled from all the catalysts that been brewing (pricing) in the market, I will continue to focus on short term trades with reduced size.
Here are the charts for the SP500, DJIA, and Nasdaq 100:
SP500:
Nasdaq 100:
DJIA:
