Since Q1 2009 the stock market has, to say the least, been on an absolute rip higher! Will this continue into 2015? Personally, I think there’s more upside to this market, but before we take a look at charts, let’s look at some astonishing performance numbers. From the 2009 lows to the current highs, the Dow Jones Industrial Average (DJIA), NASDAQ Composite (COMPQ), S&P 500 (SPX) and the Russell 2000 (RUT) have advanced as follows:
- DJIA +179.80%
- COMPQ +280.47%
- SPX +213.97%
- RUT +256.34%
Yeah, that’s what I said also, WOW!
Now we’re going to walk through eight charts – a 10 year and a 1 year for each of the aforementioned stock market indices – looking for clues if this upside move will be sustained into 2015.
Dow Jones Industrial Average 10 Year, Weekly chart
In the 1 Year chart below, you’ll see the Dow is at a very crucial point of either breaking out or being rejected near the 2014 high.
Dow Jones Industrial Average 1 Year, Daily chart
Now let’s turn out attention to the NASDAQ and let the charts do the talking.
NASDAQ Composite 10 Year, Weekly chart
In the 1 year chart below, you’ll see the NASDAQ, like the Dow, is at a very crucial point of either breaking out or being rejected near the 2014 high.
NASDAQ Composite 1 Year Chart
Now let’s take a look at the S&P 500 Index.
S&P 500 Index 10 Year, Weekly chart
And once again, in the 1 year chart below, like the Dow and NASDAQ, you can see the S&P is at a very crucial point of either breaking out or being rejected near the 2014 high.
S&P 500 Index 1 Year, Daily chart
Lastly, let’s look at the small caps index, The Russell 2000.
Russell 2000 Index 10 Year, Weekly chart
No surprises here either. In the 1 year chart below, you can see the Russell is at a very crucial point of either breaking out or being rejected near the 2014 high.
Russell 2000 Index 1 Year, Daily Chart
I wouldn’t be overly concerned with the price action of any of the above major stock market indices the rest of this week but on January 5th, 2015 keep a keen eye on these “make or break” levels as volume returns and the “Santa Clause” period winds down.
Trade safe!
Follow Dave on Twitter: @TheFibDoctor
No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
