If you blinked, you just missed the S&P 500 breakout today. Meanwhile, Tesla shares held strong at support around the $342 level. Both seem to be flashing signs of a market that could be on the cusp of a moving higher.
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We have been calling for the S&P 500 to rise all this all year, and to this point, we have not been disappointed. It is worth mentioning that the Russell 2000 has surged by nearly 8 percent over the past 30-days. Despite the move, it is still underperforming the S&P 500, up by only 9.5 percent vs. the 12 percent.
S&P 500 Breakout
The S&P 500 has been locked in a consolidation phase since September 11, in a trading range of roughly 2495 to 2507, a mere 12 points. In the chart below, one can see the index broke above the top of the range around at 2 pm. Despite, the surge the index managed to close off the highs of the day. A strong start to tomorrow morning’s trading is all the market will need to kick-off the next leg higher, on towards 2,600.
SPX by Scorpio244 on TradingView.com
The next chart shows how we have come up with our target price of 2,600. Something worth watching.
SPX by Scorpio244 on TradingView.com
Tesla
Shares of Tesla, also appear to be bottoming out, around the $342 level. The 1-minute chart shows how the stock has been able to hold support on two separate trading days. If this should be the case, it is likely shares can rise.
TSLA by Scorpio244 on TradingView.com
Looking at Tesla from a longer viewpoint shows that if the stock does rise, it is likely to return into the ascending triangle. If the trading pattern stays in place, it likely sets up a year-end run for the stock, targeting $400.
TSLA by Scorpio244 on TradingView.com
Two key developments to watch in the morning.
Subscribe to get this commentary for Free.
Other Articles by Mike Today
If you blinked, you just missed the S&P 500 breakout today. Meanwhile, Tesla shares held strong at support around the $342 level. Both seem to be flashing signs of a market that could be on the cusp of a moving higher.
Subscribe to get this commentary for Free.
We have been calling for the S&P 500 to rise all this all year, and to this point, we have not been disappointed. It is worth mentioning that the Russell 2000 has surged by nearly 8 percent over the past 30-days. Despite the move, it is still underperforming the S&P 500, up by only 9.5 percent vs. the 12 percent.
S&P 500 Breakout
The S&P 500 has been locked in a consolidation phase since September 11, in a trading range of roughly 2495 to 2507, a mere 12 points. In the chart below, one can see the index broke above the top of the range around at 2 pm. Despite, the surge the index managed to close off the highs of the day. A strong start to tomorrow morning’s trading is all the market will need to kick-off the next leg higher, on towards 2,600.
SPX by Scorpio244 on TradingView.com
The next chart shows how we have come up with our target price of 2,600. Something worth watching.
SPX by Scorpio244 on TradingView.com
Tesla
Shares of Tesla, also appear to be bottoming out, around the $342 level. The 1-minute chart shows how the stock has been able to hold support on two separate trading days. If this should be the case, it is likely shares can rise.
TSLA by Scorpio244 on TradingView.com
Looking at Tesla from a longer viewpoint shows that if the stock does rise, it is likely to return into the ascending triangle. If the trading pattern stays in place, it likely sets up a year-end run for the stock, targeting $400.
TSLA by Scorpio244 on TradingView.com
Two key developments to watch in the morning.
Subscribe to get this commentary for Free.
Other Articles by Mike Today
Apple Is The Key To Market (Behind Paywall)
Nike’s Stock Will See More Downward Pressure
Amazon’s Shares May Be On Cusp Of A Rebound
Michael Kramer and the clients of Mott Capital own shares of TSLA.
Disclaimer: Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
