The S&P 500 index got back above the 4,700 level on Friday after gaining almost 1%. Is the only way now up?
The S&P 500 index broke above the 4,700 level on Friday as it gained 0.95%. The market retraced most of its recent declines and it closed the highest in history. On the previous Friday, the index fell to the local low of 4,495.12 and it was 5.24% below the Nov. 22 record high of 4,743.83. So bulls are back in full force now and we may see another attempt at getting back to the new all-time high.
The nearest important resistance level remains at 4,740-4,750, marked by the record high, among others. On the other hand, the support level is now at around 4,665-4,670, marked by the recent local lows. The next support level remains at 4,610-4,630, marked by last Tuesday’s daily gap up of 4,612.60-4,631.97. The S&P 500 is still at its previous consolidation, as we can see on the daily chart (chart by courtesy of http://stockcharts.com):
Nasdaq 100 Remains Close To 16,400 Level
Let’s take a look at the Nasdaq 100 chart. The technology index got back to the 16,400 level last week. It is the nearest important resistance level, marked by some previous local highs. Tech stocks remain relatively weaker, as the Nasdaq 100 is still well below the Nov. 22 record high of 16,764.85.
Conclusion
The S&P 500 index will likely slightly extend its last week’s advances this morning. However, we may see a short-term profit-taking action at some point. There have been no confirmed short-term negative signals so far, and we may see an attempt at getting back to the late November record high.
Here’s the breakdown:
- The S&P 500 is expected to open slightly higher this morning but we may see a consolidation above the 4,700 level.
- Our short-position is very close a stop-loss level, and we’ll close it if it breaks above it again.