Top Equity News believes the top could be ready to blow off for stocks.
The five-year, weekly, S&P 500 chart shows an ascending, right angle, triangle with a flat top. Unscientifically, 90% of the time, the eventual breakout follows the ascending/descending leg. In this case, up.
This is why. For the bull type, buyers return earlier and earlier to challenge sellers. Aware that stocks sold off at a similar address previously; bears provide more supply – a.k.a. resistance. Buyers come back, more quickly than before, until demand outpaces supply. That’s when the top barrier breaks, and buying accelerates as computer programs and traders acknowledge the technical buy signal.
Normally, breakouts occur about 3/4s the way to completing the triangle. Any time after that could result in an unreliable buy signal. Be sure to stay with TEN as we will let you know.
While you were watching the Grammy’s, the Greek government agreed to the EU’s demanding bailout terms. It could be enough to make the breakout happen today. If not, Top Equity is on the lookout for the indexes to drop on declining volume.
If the down price and volume set-up plays out, we’ll know it’s time to buy when the S&P sprints by the top flat line on accelerating volume. Such a move should have the power to knock a hole large enough for bulls to run through, and take the S&P to at least 1420.
Stock Market Trends: A Greek Bull Love Triangle is an article from: 
