It is going to be a big week for stocks. If all goes well and in the right direction, and I believe it will go well, then that means that equities are on the verge of not only continuing to move higher but are likely heading toward record highs.

The reason I believe that lies in the current valuation of the S&P 500 which is trading at just 15 times 2020 earnings estimates. As I have noted before the current one-year forward earnings multiple is well below the average of 17 over the past two years and well below the average since 1988 of 17.7

(Data from Dow Jones S&P)

S&P 500 (SPY)

The S&P 500 rose above a significant technical resistance on Friday around the 2815 level. The next major level of resistance does not come until 2,875. A rise above that level and we may be looking at an index that would be moving into record territory

Amazon (AMZN)

Amazon’s stock broke out on Friday finally rising above the downtrend which has been in place since October. Now the next major level of resistance comes again around $1,770.

Alphabet (GOOGL)

Alphabet continues to look as if it on its way to $1,225.

Netflix (NFLX)

Netflix also broke out and may be on its way back to around $380.

Facebook (FB)

Facebook is one stock that continues to look as if it is heading lower. I believe the stock continues to fail at the $173 resistance level and is now is clinging to support at $166. A further drop is likely on the way bringing the stock back to the gap at $149.

JD (JD)

JD.com looks as if it will continue to rise. An increase above $30 triggers the next big break out and puts the stock on a path towards $35.

Qualcomm (QCOM)

Qualcomm has been on a path higher, and that is likely to continue this week. A break out above $58 sends the stock on to $62.25.

Micron (MU)

Micron reports results this week and $40 is once again resistance. I think the stock trades lower following results back down to around $36.

IQiyi (IQ)

IQiyi did end up consolidating sideways, and now the stock is butting up against an uptrend. The stock likely continues higher now on towards $30.

AMD (AMD)

There appears to be a new uptrend which has formed in AMD’s RSI, and it would suggest that it continues its rise back to $25.70.

Microsoft (MSFT)

Microsoft is at an all-time high, and I suspect that the stock will stall around $116 or even pulls back to $112 before making its next move higher towards $126.

Cisco (CSCO)

Cisco is likely to continue its path higher too. Its next level of resistance comes at $55. The stock hasn’t traded at this price since, well –the year 2000.