- Despite the new highs in the major indices, this rally does not appear to be overbought and could go much higher. As we headed into 2010, all of
the major indices broke out above their recent tight trading patterns, and stocks are likely to follow through with much higher prices.The most significant breakout is the close above 1,120 on the S&P 500 (SPX),
because it represents a close above the 50%
retracement mark of the October 2007 to March 2009 bear market, and the recent breakout gives a new target of 1,245 for the S&P.This breakout is a major buy signal, and any profit-taking pullbacks should be used as an opportunity to load up on undervalued stocks. To get your
year started off right, I want to give you my top stocks to buy for January.
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