During bull markets, we see an increase in the number of companies that announce a stock split. Fundamentally, a stock split really doesn’t change anything. The value of a company does not change. The value of shares held by investors does not change. If an investor held 100 shares of a stock for $150, they would hold $15,000 worth of stock. If a 2 for 1 split occurred, an investor would now hold 200 shares valued at $75 for a total of $15,000. A 3 for 1 would give the […]

Below is a current chart of the S&P 500 index going back to April of this year. From a pure technical point of view, after the drop in April, the market started consolidating. During this consolidation, the market was hitting at a resistance level about 1900 over a period of several weeks. After the market hit resistance, it would come back down. However, every time it headed back down, it would not drop as far. It started to form an ascending triangle pattern. In order to confirm an ascending triangle, […]