S&P follows Dow Industrials Higher
The S&P was always going to take its lead from the Dow Industrials as it followed the latter index to new all-time highs. The percentage gain wasn't significant, but it was probably enough to register it as a return above trendline resistance. As a point of note, the index is still in the 90% of historic overbought action relative to its 200-day MA.
The Nasdaq managed a close above its 50-day MA with a 'buy' signal in the MACD and Stochastics. Technicals aren't entirely there; if this is a bearish bounce then I would be looking for a reversal here - both in stochastics and price. We are approaching a resistance convergence between the former trendline and the January swing high peak, we will see if this offers an area of supply to stall the rally.We have the S&P and Russell 2000 doing most of the leg work as they look to drag the Nasdaq along for the ride. With rallies building from swing lows we have to consider the potential for measured moves higher, which for the S&P is up around 4,400, 15,700 for the Nasdaq and 287 for the Russell 2000.
You've now read my opinion, next read Douglas' blog.
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