Zak Mir – Dow and S&P500: The Runaway Move

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By Zak Mir.

Dow, S&P: The Runaway Move

As things stand in the wake of Fed Chairwoman in waiting Janet Yellen’s predictably dovish comments on QE, we have the prospect of a runaway move to the upside for the main U.S. equity markets. This is of course over and above any normal seasonal cheer/year end rally, which would normally be on  tap from the latter part of November. So far the doomsters who focused on the debt ceiling crisis appear to have been totally wrong footed.


  • Break of stubborn May resistance line at 15,800  last week.
  • Dow price action backed by multiple support points in RSI oscillator window near 60.
  • Little obvious resistance now until top of April price channel at 16,400. 


  • S&P effectively flagged the big break to new records for U.S. equities, still much higher in relative terms than the Dow.
  • “Minimum” upside currently seen towards May price channel top at 1,810.
  • Best case scenario target for the end of the year now as high as 1,950 and a February resistance line projection. Only well below recent 1,750 bull flag even begins to be negative. 

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