Stocks Bouncing, But Will They Resume The Uptrend?

S&P 500 futures contract - S&P 500 index chart

 

Nasdaq Also Higher

The technology Nasdaq 100 futures contract follows a similar path, as it trades within an intraday uptrend. The market gained over 1,200 points from December the 26th local low of around 5,820 in the recent weeks. And we saw some short-term technical overbought conditions last week. The nearest important resistance level is now at 6,950-7,000. The support level is at 6,900, among others. The Nasdaq futures contract got closer to the 7,000 mark again, as we can see on the 15-minute chart:

Nasdaq 100 futures contract - Nasdaq 100 index chart

Big Cap Tech Stocks Continue Sideways

Let's take a look at the Apple, Inc. stock (AAPL) daily chart (chart courtesy of http://stockcharts.com). Apple released its quarterly earnings recently. Then the stock broke above the recent trading range and the resistance level of $155-160. It retraced some more of its November-December sell-off. But on Thursday it bounced off $175, retracing some of the recent advance. For now, it looks like a short-term downward correction:

Daily Apple, Inc. chart - AAPL

Now let's take a look at the daily chart of Amazon.com, Inc. (AMZN). The market broke above one of its three-month-long downward trend lines a month ago. Since then it has been going sideways. There is a resistance level at around $1,700-1,750. Recently it bounced off that resistance level following quarterly earnings release:

Daily Amazon.com, Inc. chart - AMZN

 

Dow Jones Above the Broken Downward Trend Line

The Dow Jones Industrial Average extended its short-term uptrend last week after breaking above its medium-term downward trend line. Then it retraced some of the advance as it fell closer to 25,000 level. Will the blue-chip stocks' gauge continue higher and reach its record high again? Or reverse lower in the near term? There have been no confirmed negative signals so far. But there is a resistance level of around 25,500-26,000:

Daily DJIA index chart - DJIA, Blue-Chip Index

 

Japanese Nikkei Still Relatively Weak

Let's take a look at the Japanese Nikkei 225 index. It accelerated the downtrend in late December, as it fell slightly below the level of 19,000. Since then it has been retracing the downtrend. Recently it got close to 21,000 mark. For now, it still looks like an upward correction and the Nikkei is relatively weak, as it remains below the October - November local lows:

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