Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19
Gold Price Gann Angle Update - 10th July 19
Crude Oil Prices and the 2019 Hurricane Season - 10th July 19
Can Gold Recover from Friday’s Strong Payrolls Hit? - 10th July 19
Netflix’s Worst Nightmare Has Come True - 10th July 19
LIMITLESS - Improving Cognitive Function and Fighting Brain Ageing Right Now! - 10th July 19
US Dollar Strength Will Drive Markets Higher - 10th July 19
Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis - 10th July 19
Stock Market SPX 3000 Dream is Pushed Away: Pullback of 5-10% is Coming - 10th July 19
July 2019 GBPUSD Market Update and Outlook - 10th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

S&P 500 Suggests Much Higher Prices Coming In 2016 And 2017

Stock-Markets / Stocks Bull Market Jul 22, 2016 - 11:42 AM GMT

By: InvestingHaven

Stock-Markets

Let’s get things straight: when an asset consolidates for more than 2 years, refuses to break down when the whole world seems to be falling apart, but then decides to break out from its consolidation pattern, it is a clear message that it has sufficient energy to go much higher.

We are talking U.S. stocks.


Admittedly, the above forecast may sound counterintuitive, given the headlines we were reading only a couple of months back:

Stock market’s terrible start to 2016 just got worse (CNN Money)
Stock-market crash of 2016: The countdown begins (Market Watch)
Stock markets hit by global rout raising fears for financial sector (The Guardian)
One smart stock market analyst thinks this is where we’re headed … gulp (Business Insider)
Warren Buffett Predicting Upcoming Stock Market Crash? (Profit Confidential)
Analyst: Here Comes the Biggest Stock Market Crash in a Generation (Fortune.com)

Which stock market crash? Are we saying that all those gurus, analysts, talking heads, with so much knowledge and investment wisdom, all got it wrong? The short answer: yes.

Admittedly, it was looking ugly during those dark days in January and February of 2016, but one thing all those gurus from the above mentioned articles failed to do is watch the most basic thing that all investors have at their disposal: charts. As we said many times throughout the first months of this year, the stock market refused to break below some important price levels, and that is sufficient proof to conclude there is NO bear market developing. Read for instance this article Stocks about to collapse or rally to all-time highs? which we wrote in Feburary/March of 2016, right at the time when all those doomsday articles appeared.

The one and only thing that investors have to do is read and correctly interpret charts. All the rest is noise. Let’s repeat that to ensure the message is clear: all the rest is noise.

Whether we agree or not with the next statement we are going to make in a second is unimportant; our opinion is noise, just like the ones from gurus and billionaires. The fact of the matter is that U.S. stock markets are trending higher, and will trade much higher in 2016 and 2017. We could find this counterintuitive, but that’s not important, that is an opinion which falls in the category “noise”. The charts are fact based, and that is the only thing that matters.

The S&P 500 chart, the bellwether of U.S. stocks, is sending a clear message to investors. It wants to go higher as it is breaking out from a 2-year consolidation pattern.

Let’s not forget that the longer a consolidation, the more energy is built up for the next trend.We expect much higher stock prices in the coming 12 months. However, stock market investors must not forget this important rule in our “new world”: a thoughtful selection of companies in your portfolio is a key success factor (source: Investing Paradox 2016: Why Buy And Hold Is Still A Good Strategy).

http://investinghaven.com

Analyst Team
The team has +15 years of experience in global markets. Their methodology is unique and effective, yet easy to understand; it is based on chart analysis combined with intermarket / fundamental / sentiment analysis. The work of the team appeared on major financial outlets like FinancialSense, SeekingAlpha, MarketWatch, ...

Copyright © 2016 Investing Haven - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules