SSO Cup and Handle Targets a Breakout

SSO stalled just below the 20 day moving average of it’s daily chart Friday. The Ultra long S&P 500 ETF closed near the high of the day. Move through that and the next breakout point is over 100. There’s a bullish cup ‘n handle now, which indicates it could occur.

With MSFT giving the green signal with it’s earnings, the break from a five-year base should allow fund managers a reason to buy stocks in what is seasonally a good time to buy stocks… November and December. What’s good for Microsoft, is great for Mister Softy’s suppliers usually.

On Friday, a trader made the comment to me, “I don’t see how the market keeps going higher with all of this negative news. The dollar’s shot, credit crunch news is negative, and billion dollar writeoffs are happening.” All I could say was, “It is what it is.” It’s too easy to get caught up in negative news that’s spun. I really try and not become biased, and focus on charts. It’s just too easy for a bull market to climb that Wall of Worry.