Hey, Ross here:
The Consumer Price Index data was just released. Tomorrow, it’s producer prices.
And as the Chart of the Day shows, if both readings are good, it could be the trigger that sends the S&P 500 breaking out.
Chart of the Day
This is the S&P 500.
And as you can see by the two white horizontal lines, it’s been range bound for the past month – bouncing between clearly defined support and resistance.
That resistance level, by the way, also corresponds with its all-time high almost exactly two years ago.
As I mentioned earlier, if inflation data comes in cooler than expected, that could be exactly what’s needed for the S&P 500 to break out of this range and into new highs.
Insight of the Day
Most traders miss obvious signs of impending breakouts.
Not all breakout patterns resolve upward – there are failed breakouts as well.
But if you know how to spot these patterns, you’re stacking the odds heavily in your favor – and that’s the best we can do in trading.
And you don’t even have to wait for the entire market to break out…
Because institutional buying causes these breakouts to happen in individual stocks all the time.]
So if you know which stocks these institutions are targeting, you could get in right before the breakout – essentially using their money to profit.
I discovered how to spot these signs of institutional buying after years in the heart of Wall Street…
And I created a strategy around it so that ordinary people can profit from the big institutions.
You can get all the details by clicking here.
Ross Givens
Editor, Stock Surge Daily
