Tags: stocks | S&P 500 | rie | shares

US Stocks Will Rise After Short-Term Drop, ING Technical Analysis Predicts

Wednesday, 08 May 2013 07:27 AM

The Standard & Poor’s 500 Index will continue its advance and may trigger a longer-term buy signal for global equity markets, even as the benchmark gauge for U.S. stocks nears a resistance level, according to a technical analyst at ING Groep NV.

The measure is nearing its short-term resistance of 1,635, signalling a possible 1.6 percent decline from Tuesday’s finish to 1,600 within the next two weeks.

Still, a monthly close above the longer-term resistance level of 1,600 would send a buy signal for the next year, triggering a greater increase in the S&P 500 that will lead global stock markets higher, Roelof- Jan van den Akker said.

The S&P 500 climbed Tuesday to its fourth straight record close. The measure topped 1,600 for the first time on May 3.

U.S. stocks are in the fifth year of a bull market amid better- than estimated corporate earnings and three rounds of bond purchases by the Federal Reserve.

“Prices are slowly breaking the upward rising resistance line around 1,600,” van den Akker said in a telephone interview from Amsterdam.

“Even though we may see a short-term pullback that we will consider normal, the S&P 500’s uptrend is intact and likely to continue. Prices are still in a steep upward move in the next few weeks.”

In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.

© Copyright 2015 Bloomberg News. All rights reserved.

1Like our page

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved