The stock market, as measured by the S&P 500 Index SPX, has decisively broken out to the upside. This rally began in late October, initially spurred by a deeply oversold condition and a favorable seasonal pattern. That brought SPX up to nearly the 4400 level, where it faced resistance from three different factors. But late last week, it managed to close above there, signaling a new bullish state. This week, favorable CPI numbers and heavy short-covering have accelerated the rally.
SPX has already risen to the first resistance…
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