By Christopher Diodato
Hey short term traders, it looks like the market is gearing for another breakout. We have been in a consolidation (while the rest of the world has been declining) since Bernanke's announcement of QE3. Now, it looks like the market, with renewed passion, is making another push to break through the resistance level at 1465 on the SPX and 13,660 on the Dow. This is a "flag" formation. To trade this breakout, set a stop order slightly above the resistance level and once filled, ride the breakout to the target of 13,925. Wise traders will take their profits slightly before the target is hit (don't get greedy)!
You can access the picture of the formation by clicking here.
Happy trading!