div > div.group > p:first-child"> Stocks have been flat so far this week, with the S&P 500 mostly trading around 2,800, a technical level it has been challenged by four times since October, including this week. The S&P did rise above 2,800 on Monday and Tuesday but failed to close above it. It was trading at 2,875 Thursday. The last time the S&P closed above 2,800 was Nov. 8, but it hit that level on an intraday basis Dec. 3.
"Every time the market has gotten to 2,800 or thereabouts, it's fallen and so it's failed there," he said."It hit 2,800 in mid-October and then fell pretty significantly. It retested it in early November, fell again, retested almost at 2,800 in December, and that's when we saw the bid December correction, and now we're back to that level. There's a huge amount of focus on it.
"It's interesting because sentiment has been improving while the fundamentals have been weakening. Part of the improvement in sentiment is a reflection of just kind of correcting the collapse in sentiment that shouldn't have happened in December," he said."We're now at pre-December levels, so from here to see another leg up in the market, it's got to be supported by improving growth outlooks, which we're not getting any concrete signs of.
"As we saw last summer, once 2,800 was officially overtaken, it became support," he said."And that support helped propel the market to new highs."The S&P 500 is up 18 percent from its Dec. 24 low closing, so Cappelleri said it makes sense that the market could pause to consolidate its gains. "It is a barrier...just in speaking in terms of resistance, there's a range from 2,800 even up to 2,815. That would be the high from the October/November period," said Air Wald, a technical analyst at Oppenheimer."It begs the question can we break through?"Wald said he is encouraged by some of the positives he's seeing, like a broadening in participation of different stock groups, evidenced in a growing number of advancing shares versus declining issues.
Yet! You pump allllllll dayyyyyyyyy?
What good reasons are there for stocks in an aging market full of poor econonic news? There is already a 'Trade Talk' bubble on top of all the other bubbles
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