By: Scott Redler
The market tagged the 1,150 area before running out of some steam–that usually happens right before a handle gets built in a very bullish Cup and Handle type pattern (sorry the Big and Little Dipper might be a stretch for Cups and Handles, but you get the drift right?). So expect a little rest up here and as long as we hold 1,125-1,130 look for another break to the upside. The next move should take us to the 1,175-1,185 area.
We are running out of big breakout type moves, so the patterns and the trade change. Yesterday, I posted a chart of Intel (INTC) to highlight that longer-term breakout shaping up. Here’s that chart again:
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Lastly, Google (GOOG) has been a little bit of a laggard with the big cap tech crew of late. We might get a good setup around here on a break higher.
All in all, we can use some time to digest this fast move higher. Look for the handle part of the Cup and Handle pattern to form and then provide us with a trigger entry on the breakout.
