Financial Market Analysis
By Shawn R. Carpenter
Monday, January 16, 2006
S&P 500 (SPX) rally in 2005?
Can the equity markets pull off new all-time highs in 2006?
The cup and handle formation is a classic bullish indicator that indicates that the underlying stock, or in this case the SPX index, will be heading in an upward direction. As time unfolded, the SPX index rallied along with the rest of the market at the end of 2005. Based off of this chart, we might see some higher prices going into 2006, but beware the factors of a possbile Iran nuclear conflict, fed rate hikes, and poor corporate earnings outlook. These issues could pose an obstacle for a rally.
¶ 12:47:00 PM 
Can the equity markets pull off new all-time highs in 2006?
The cup and handle formation is a classic bullish indicator that indicates that the underlying stock, or in this case the SPX index, will be heading in an upward direction. As time unfolded, the SPX index rallied along with the rest of the market at the end of 2005. Based off of this chart, we might see some higher prices going into 2006, but beware the factors of a possbile Iran nuclear conflict, fed rate hikes, and poor corporate earnings outlook. These issues could pose an obstacle for a rally.
¶ 12:47:00 PM
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