Stocks broke the all-important level of 3,000 on the S&P 500 yesterday. The market is now forming a triangle formation.

The breakout is likely to ultimately be up. Breadth leads stocks and breadth is in a clear rising channel, having recently risen to new all-time highs.

Until we get a breakdown from that channel, the likelihood of a severe breakdown remains small.

Big picture I believe stocks are preparing for a blow off top that will take the S&P 500 to 3,400 or even 4,000. After that, comes the bear market.

Best Regards  

Graham Summers  
Chief Market Strategist  
Phoenix Capital Research