George Leong: More gains ahead—or at least I’m sensing the stock market has more room to advance, especially with the bullish investor sentiment that has characterized the majority of the year continuing to hold.
The S&P 500 and Dow Jones Industrial Average continued to advance to record heights last Wednesday and again on Thursday. The near-term trend is pointing higher. The S&P 500 will likely break 1,800 prior to the year-end, unless consumer spending tanks.
The stock market even appears to have discounted in some tapering in December or January. Traders realize the tapering is coming and they’ve come to terms with that—as long as it’s slow and the economy delivers stronger and steady growth. A slight rise in long-term rates and the 10-year bond yield is not going to hurt the stock market that much.
The rise in the Dow Jones industrials continues to be confirmed by an associated rise in the Dow Jones Transportation Average, as reflected on the chart below. Both the industrials (red candlesticks) and transportation stocks (green line) are trending higher, and that means more gains ahead.
Chart courtesy of www.StockCharts.com
Fighting the trend is fruitless at this point. The breakout appears to be holding, as indicated by the blue oval on the chart above. Now we could see a correction down to around 14,700, but this would be a buying opportunity, as I sense the stock market will continue to edge higher. (Read “Vulnerable Key Stock Index May Be Signaling Upcoming Buying Opportunity.”)
As we move toward year-end and into 2014, I expect the stock market to advance higher. So make sure you are invested for more gains and have cash available for a possible buying opportunity.(...)Click here to continue reading the original ETFDailyNews.com article: Dow Jones Industrial Average: More Room To Advance?You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)