Off the Charts
Going, going ... gone! The market exploded to new multi-year highs Thursday as the recent range resolved to the upside. Before the open today, European Central Bank President Mario Draghi delivered what investors wanted to hear when he announced a "sterilized" ECB bond-buying plan, and it was up, up and away for the market. The S&P 500 closed the day up 2.04%, the Nasdaq up 2.17% and the Dow up 1.87%.
It has been stated before that a move below 1395-1398 would resolve this range to the downside but a move above 1414-1416 would set in motion a breakout to new multi-year highs. After the positive announcement from Draghi this morning, there was a gap-and-go to the upside in the market. Traders had to be prepared and act quickly, as this upside trigger happened off the open and extended higher throughout the rest of the session to close the day on highs. Today's potent move higher should signal the direction of the market for several sessions to come. Avoid exuberance, but the trend is to the upside, and dips should be buyable for the foreseeable future....594 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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