S&P 500 Gets Closer To 2,800, Will Stocks Continue Higher?

The U.S. stock market indexes gained 0.6-0.9% on Friday, as investors' sentiment remained bullish following the recent advances. The S&P 500 index retraced more of its October-December downward correction of 20.2%. It got closer to the previous local highs along the 2,800 level. The Dow Jones Industrial Average gained 0.7% and the Nasdaq Composite gained 0.9% on Friday.

The nearest important resistance level of the S&P 500 index remains at around 2,800, marked by the previous medium-term local highs. On the other hand, the support level is now at 2,765-2,780, marked by the recent local lows. The support level is also at the previous Friday's daily gap up of 2,757.90-2,760.24.

The broad stock market retraced all of its December sell-off and it got closer to the medium-term resistance level of around 2,800, marked by the October-November local highs. So is it still just a correction or a new medium-term uptrend? The market broke above the 61.8% Fibonacci retracement of the 20% decline. And we may see an attempt at getting back to the record highs. But will the index break above the mentioned previous local highs? There have been no confirmed negative signals so far:

Daily S&P 500 index chart - SPX, Large Cap Index

Positive Expectations Again

Expectations before the opening of today's trading session are positive because the index futures contracts trade 0.5-0.7% above vs. their Friday's closing prices. The European stock market indexes have been mixed so far. Investors will wait for the Wholesale Inventories number release at 10:00 a.m. The broad stock market will likely extend its uptrend again today, but then it may fluctuate along the level of 2,800. We may see an attempt at breaking above the October-November medium-term highs.

The S&P 500 futures contract trades within an intraday uptrend, as it reaches new short-term highs. The market is now above the 2,800 mark. The support level is now at around  2,790-2,795, among others. The futures contract remains above the two-day-long upward trend line, as the 15-minute cart shows:

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Disclosure: None.

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