‘Godfather’ of chart analysis says ‘Trump ra
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Posted On: 01/23/2017 5:24:52 PM
‘Godfather’ of chart analysis says ‘Trump rally’ has another 5% pop left.
Prominent market technician Ralph Acampora thinks the stock market
has more room to run over the near term, despite a trend that has seen the
Dow steadily walk back from the psychologically significant level of 20,000.
Acampora told MarketWatch on Monday that the Dow Jones Industrial Average and the S&P 500 index still have another 5% rise in them over the next several months. That would take the Dow DJIA, -0.14% to around 20,750, handily breaching 20,000, from its current level of about 19,790, while the S&P 500 SPX, -0.27% would hit around 2,370 from 2,260.
He acknowledged that a recent stall has been “frustrating,” but maintains a bullish near-term outlook.
“The market has been in a tighter trading range for what seems like forever, but from a technical standpoint, I don’t see any major deterioration [in the upward trend],” he said. “I think the market is marking time” before it heads higher, he said.
Since Trump stunned the world by beating out Hillary Clinton on Nov. 8 to win the presidency, the S&P 500 has advanced 6.2%, the Dow has climbed 8%, while the Nasdaq Composite Index COMP, -0.04% has rallied 6.7% during that period. That ascent was supported by a raft of pro-business policies promoted by Trump, including a rollback of regulations, tax cuts and trade policies that are intended to put U.S. interests first
Market technicians tend to examine signals in an assets’ trading momentum to determine the likelihood that it will head higher or has reached a peak and is ready to sell off. Many technicians assume a trend remains in place until a significant technical level, among other factors, has been breached.
Acampora’s line in the sand for the Dow is the Jan. 19 intraday low of 19,677. Heading below that level, among other factors, might signal a reversal or bearish trend has taken hold in the blue-chip gauge.
Acampora, a pioneer in the field of technical market analysis, who is known affectionately around the world as the “godfather of technical analysis,” said Wall Street will continue to be emboldened by Trump’s policy promises
Prominent market technician Ralph Acampora thinks the stock market
has more room to run over the near term, despite a trend that has seen the
Dow steadily walk back from the psychologically significant level of 20,000.
Acampora told MarketWatch on Monday that the Dow Jones Industrial Average and the S&P 500 index still have another 5% rise in them over the next several months. That would take the Dow DJIA, -0.14% to around 20,750, handily breaching 20,000, from its current level of about 19,790, while the S&P 500 SPX, -0.27% would hit around 2,370 from 2,260.
He acknowledged that a recent stall has been “frustrating,” but maintains a bullish near-term outlook.
“The market has been in a tighter trading range for what seems like forever, but from a technical standpoint, I don’t see any major deterioration [in the upward trend],” he said. “I think the market is marking time” before it heads higher, he said.
Since Trump stunned the world by beating out Hillary Clinton on Nov. 8 to win the presidency, the S&P 500 has advanced 6.2%, the Dow has climbed 8%, while the Nasdaq Composite Index COMP, -0.04% has rallied 6.7% during that period. That ascent was supported by a raft of pro-business policies promoted by Trump, including a rollback of regulations, tax cuts and trade policies that are intended to put U.S. interests first
Market technicians tend to examine signals in an assets’ trading momentum to determine the likelihood that it will head higher or has reached a peak and is ready to sell off. Many technicians assume a trend remains in place until a significant technical level, among other factors, has been breached.
Acampora’s line in the sand for the Dow is the Jan. 19 intraday low of 19,677. Heading below that level, among other factors, might signal a reversal or bearish trend has taken hold in the blue-chip gauge.
Acampora, a pioneer in the field of technical market analysis, who is known affectionately around the world as the “godfather of technical analysis,” said Wall Street will continue to be emboldened by Trump’s policy promises
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