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Thanks so much -- The S&P 500 holding above its record 16100 level but my next guest says.
She sees -- sky -- as high 1780 by next year to an analogy technical -- perspective -- -- Stockton chief market technician.
For and -- and partners welcome Katie.
Thanks again so getting your latest researches say you don't see any further resistance left.
For the broad market average and you say -- 1780 target is attainable in 2014 so what will drive.
ES and 500 from here to there.
Really it's a momentum story if Christ it's positive long term and -- positive short term momentum that dread the S&P 500.
To a new all time high and really all time high.
By definition means there's no resistance left for the S&P 500.
Of course that puts it in the same boat as the Russell 2000 index such a small -- -- And Austin that Dow Industrials now having gotten above that 151000 mark which is a very psychologically significant level.
Today's break -- -- well -- the app trend over the long term.
And we can derive a price target but at 1780 that doesn't mean that's -- at ten and but it's from a previous break at that we saw on the S&P 500 in 2012.
And -- about 10% about current levels I do you think it's attainable as early as 2014.
So Katie just remind our viewers your expertise is looking at these numbers and coming out formulas to determine where the next level that these markets these indexes will hit.
How are you able to determine with this research at the S&P 500 is not over bot that hasn't come too far too quickly.
And actually is ever by -- -- overbought conditions can actually be sustained spell at times -- momentum is strongly positive.
And today we've actually had not been very positive short commandments and you know what I believe was really stuck tracks and markets a lot of S&P 500 managed to forge higher.
We actually -- traction in quite a few areas of the market specifically cyclical -- in the market.
Industrials technology selectively within the financials we did -- -- backs there.
Energy would be another example.
So it was somewhat of a narrow advance -- on the S&P 500 -- suffering means.
Over Bob by some measures.
These other sectors and a lot of individual stocks actually became very close to -- -- and that to me is where we should be looking for buying opportunities at that time.
So when -- put this far a target of 1780 on ES and what other indicators should investors look for for these periods of -- cut consolidation excuse me that you're describing.
Rice and you need to consult the momentum indicators -- moving average based indicators are great way to do that.
There's something called the Mac.
Moving average convergence divergence indicator.
And it's a very positive tool right now sent me to stay in the race -- -- these momentum tools as really what you want to do it and it that way at Trenton falling.
So let's go down on some of these sectors it's interesting there's been so much talk of sector rotation out of defense into some of the more cyclical sectors and we can look at staples because for much of the year staples been outperforming the S&P 500.
But perhaps that's changing and we put a chart together we pulled it from your research -- hope -- can pop it up -- but anyway you see.
The staples industry.
Now there you see if you look at the far side of your screen really coming closer to the S&P so is that a cell signal sent.
-- say something on because we do actually has some -- and -- exhaustion arcana ten south signals now.
In the consumer staples sector reverses the broader market -- -- -- and 500.
And so it's a little bit early to say that we've seen a turnaround.
In favor of the more cyclical areas of the market but they're certainly indications that that may occur so.
While consumer staples has had positive momentum on a relative basis.
It seems to be losing that moment and and I think it'll become clear in the next couple of weeks that we've seen some rotation out of these more defensive areas.
Including utilities and -- health care.
And industrials I mean you can just that talk about so quickly got to run quickly but the industry's cutting back for the S&P line and so in that respect it could be an early buy signal.
That's right so we do you have -- exhaustion on the left side in the industrial sector and that -- bad well for -- -- -- -- the next couple of months at a minimum.
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