Gauging The Stock Market Into 2015: A Look At The Technicals

David Busick

Since Q1 2009 the stock market has, to say the least, been on an absolute rip higher! Will this continue into 2015? Personally, I think there’s more upside to this market, but before we take a look at charts, let’s look at some astonishing performance numbers. From the 2009 lows to the current highs, the Dow Jones Industrial Average (DJIA), NASDAQ Composite (COMPQ), S&P 500 (SPX) and the Russell 2000 (RUT) have advanced as follows:

  • DJIA  +179.80%
  • COMPQ  +280.47%
  • SPX  +213.97%
  • RUT  +256.34%

Yeah, that’s what I said also, WOW!

Now we’re going to walk through eight charts – a 10 year and a 1 year for each of the aforementioned stock market indices – looking for clues if this upside move will be sustained into 2015.

Dow Jones Industrial Average 10 Year, Weekly chart

djia dow jones price targets_10 year stock market chart

 

In the 1 Year chart below, you’ll see the Dow is at a very crucial point of either breaking out or being rejected near the 2014 high.

Dow Jones Industrial Average 1 Year, Daily chart

djia dow jones chart 2014 stock market analysis

 

Now let’s turn out attention to the NASDAQ and let the charts do the talking.

NASDAQ Composite 10 Year, Weekly chart

nasdaq price targets 10 year weekly chart_2015

 

In the 1 year chart below, you’ll see the NASDAQ, like the Dow, is at a very crucial point of either breaking out or being rejected near the 2014 high.

NASDAQ Composite 1 Year Chart

nasdaq chart 2014 price analysis

 

Now let’s take a look at the S&P 500 Index.

S&P 500 Index 10 Year, Weekly chart

sp 500 price targets_spx 10 year weekly chart_2015

 

And once again, in the 1 year chart below, like the Dow and NASDAQ,  you can see the S&P is at a very crucial point of either breaking out or being rejected near the 2014 high.

S&P 500 Index 1 Year, Daily chart

spx 1 year chart 2014

 

Lastly, let’s look at the small caps index, The Russell 2000.

Russell 2000 Index 10 Year, Weekly chart

russell 2000 10 year chart breakout 2015

 

No surprises here either. In the 1 year chart below, you can see the Russell is at a very crucial point of either breaking out or being rejected near the 2014 high.

Russell 2000 Index 1 Year, Daily Chart

russell 2000 small caps analysis 2014 chart

 

I wouldn’t be overly concerned with the price action of any of the above major stock market indices the rest of this week but on January 5th, 2015 keep a keen eye on these “make or break” levels as volume returns and the “Santa Clause” period winds down.

Trade safe!

Follow Dave on Twitter:  @TheFibDoctor

No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

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