Breakout near for stocks??

1 Apr 2021

Stocks have regained highs. The S&P has just barely inched above highs at 3987, but is still having trouble with 4009. We are seeing some weakness at highs and there are two possibilities. First, we could see a retracement and continuation of that consolidation of volatility preceding the breakout. We could see a wedge or flag form. If so 3928 will be a good level of support. However, we could be gearing up for a breakout from current levels. So if you are a breakout trader pay attention to the momentum at open. We will need clear, definitive buying momentum in order to sustain a breakout. If we see ambivalence then a retracement is highly likely so watch lower levels for support.