A late-day rally into the close left the S&P 500 back above its 50-day moving average. As shown in the six-month candle chart of the index below, the S&P traded down to support at its highs from early June a couple of weeks ago, and it held that support very nicely. Now let’s see if the bulls can push it back up to new highs in the coming days and weeks.
One stock that helped propel the S&P (and Dow) today was Caterpillar (CAT). With a gain of 27% this year, CAT is currently the top performing Dow stock of 2016. As shown below, the stock experienced a massive upside breakout today.
CAT was added to the Bespoke Model Portfolio back in April at $79.73. Today’s move gives us a gain of 10% on the trade. If you would like to see the rest of Bespoke’s Model Portfolio, please choose a monthly or annual membership option now.