Stocks Get Closer To Last Year's Record High

The U.S. stock market indexes gained 0.5-1.0% on Friday, breaking above the recent trading range, as investors' sentiment improved following the first quarterly earnings releases, among other factors. The S&P 500 index retraced more of its October-December downward correction of 20.2% on Friday. It broke above the 2,900 level. The broad stock market's gauge is now just 1.1% below September the 21st record high of 2,940.91. The Dow Jones Industrial Average gained 1.0% and the Nasdaq Composite gained 0.5% on Friday.

The nearest important resistance level of the S&P 500 index is now at 2,920-2,940, marked by the mentioned record high, among others. On the other hand, the support level is now at 2,900, marked by the recent resistance level. The support level is also at 2,860-2,865, marked by the recent local lows.

The broad stock market retraced all of its December sell-off and it broke above the medium-term resistance level of around 2,900 on Friday. So is it still just a correction or a new medium-term uptrend? We may see an attempt at getting back to the record high. There have been no confirmed negative medium-term signals so far. The index got closer to its last October all-time high, as we can see on the daily chart:

 

Consolidation Following Friday's Rally

Expectations before the opening of today's trading session are virtually flat, because the index futures contracts trade between -0.1% and +0.2% vs. their Friday's closing prices. The European stock market indexes have been mixed so far. Investors will wait for the Empire State Manufacturing Index release at 8:30 a.m. They will also wait for the quarterly earnings releases. Stocks will likely fluctuate following Friday's rally. There have been no confirmed negative signals so far. However, we could see some more uncertainty as the broad stock market's gauge gets closer to the mentioned September's record high.

1 2 3
View single page >> |

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.