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On Monday, the NYSE A/D Line moved above its April highs, indicating that the major averages like the S&P 500 will also eventually move above their April highs. I have been expecting this since the triangle formation was completed on July 13 and the pullback to 1056 that followed created a good entry point. The financial stocks were also strong as sector ETF XLF closed just above recent highs and its 200-day MA. The chart formation has upside targets at $16.80 with key support at $13.80.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
