Stocks Break Through Resistance

Stocks rallied for a fourth week with the S&P500  breaking out of its 4 month trading range.  The S&P traded at its highest level since last May closing above resistance.

As you can see in the above chart, the S&P today confirmed an inverse head and shoulders pattern with an upside target above last April's high. It would have been added confirmation if volume was heavy on the breakout but in any event the market has broken out of its range and it appears that the bulls are in control.