By Graham Summers, MBA
Stocks aren’t taking a breather.
The S&P 500 is up nearly 150 points in just five sessions. This has been quite a move. And what’s truly extraordinary is that every intraday dip is being bought aggressively.
![](https://gainspainscapital.com/wp-content/uploads/2024/01/GPC12424.png)
However, a word of caution here.
The S&P 500 is now 4% above its 50-Day Moving Average (DMA) and 9.8% above its 200-DMA. Over these last 18 months, any time the index has become this extended above its trend has resulted in a short term peak. So, it wouldn’t be surprising to see the S&P 500 correct down to back-test the recent breakout at 4,790.
![](https://gainspainscapital.com/wp-content/uploads/2024/01/GPC124242.png)
After that, the door is open to 5,000 on the S&P 500. The Cup and Handle formation I outlined a few weeks ago has broken to the upside. Long-term (later in 2024) we are likely going MUCH higher.
![](https://gainspainscapital.com/wp-content/uploads/2024/01/GPC124243.png)
For more market insights swing by https://gainspainscapital.com/
![](https://gainspainscapital.com/wp-content/uploads/2024/01/email-signature.jpg)