April 5, 2021

To gain an edge, this is what you need to know today.

Stock Market Breaks Out

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark for the stock market index (SPX).

Note the following:

• The chart shows that the stock market has broken out.
• The chart shows the breakout that occurred after the trend line held.
• RSI shown on the chart is slightly overbought but there is more room to run.
• There is enthusiasm after a strong jobs report on Friday.
• Investors ought to look at different time frames.  Even though there is a breakout, in the very, very short term, the rally can stall and even a shallow pullback can occur.