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Technical Indicators Are Turning Bullish
Pinnacle Digest writes: In his latest article Chris Ciovacco addresses the bullish technical indicators he’s identified over the last couple weeks. Ciovacco believes a possible target of 1,396 for the S&P 500 could be hit in the near-term (marking a nearly 50 point swing).
While he isn’t ignoring the fact that the markets face many problems (slowing US economy, Spain and Italy bond yields and the media’s latest obsession...the dreaded fiscal cliff), Ciovacco states that “stocks and commodities are flashing bullish signals.”
He attributes the bullish signals, for the most part, to the expectation of QE 3. Yes that’s right, QE 3 is back on the table for the umpteenth time. And on Tuesday and Wednesday Ben Bernanke is scheduled to update congress on the status of monetary policy in the US. He will be doing so at a time when the US unemployment numbers have disappointed for three straight months, consumer confidence has dropped for three straight months and exports have been hurt by the Euro crisis.
Dennis Lockhart, a voting member of the Federal Reserve’s policy-setting body, has stated that he is edging closer to supporting another round of QE.
Ciovacco goes on to mention that the Vanguard Total Stock Market ETF (VTI) is consistently establishing higher lows and higher highs since the start of June. This has confirmed an upward trend not seen for several months.
Click here to read the full article from Chris Ciovacco.