Stocks Can Still Go Higher
11/05/2010 12:01 am EST
As stocks blasted off to the upside on Thursday, many were still treating the rally with disbelief. In early September, I noted here that the Advance/Decline (A/D) line had broken out to the upside as the new highs in the A/D line in April were a strong indication that the rally from the March 2009 lows was not over. The strong A/D line is still indicating that stocks can move even higher with the next Fibonacci targets for the S&P at 1280 and 1355. The on-balance volume (OBV) broke out in September and has also made new highs. A pullback is likely before Thanksgiving.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.