Yesterday may have been the breakout that brings more investors to the market. After JP Morgan cut to the front of the line and announced they passed the Fed's stress test, hiked their dividend, and are going to buyback $15 billion of their stock, the market spiked into the close.
The NASDAQ, Dow and S&P all booked at least a 1.68% gain with the latter pair on decent volume. Unfortunately, the NASDAQ's volume remained lackluster, but that's the only unwelcome news on the day.
All three blew the lid off of resistance and look as more gains are coming. Based on our technical analysis of the indexes, iStock is calling for 13,750 for the Dow, 3,175's the NASDAQ target, and we see the S&P at 1,460 in the 2-4 weeks.
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About the only thing that could derail this runaway low VIX locomotive is a natural disaster, a misbehaving Iran, or Spain, Portugal or Greece blowing up. However, the super low volatility levels tell you that Wall Street is worried about nothing.
This marked up S&P chart mirrors the Dow and NASDAQ. It gives you a good look at what we see technically, and where we think the index is headed.