Friday’s trading session was bullish, as stocks broke above their short-term consolidation following the first quarterly earnings releases, among other factors. The S&P 500 indexbroke above the 2,900 level. Will the uptrend extend despite some technical overbought conditions?

The U.S. stock market indexesgained 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 just1.1% below September the 21st record high of 2,940.91. The Dow Jones Industrial Averagegained 1.0%and the Nasdaq Composite gained0.5% 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-termsignals so far. The index got closer to its last October all-time high, as we can see on the daily chart:

Stock

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 likelyfluctuate 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.

The S&P 500 futures contract trades within an intraday consolidation, as it remains above the 2,900 mark. The nearest important resistance level is at around 2,920. On the other hand, the support level is at 2,880-2,900, among others. The futures contract remains close to the new medium-term high above the 2,900 level, as the 15-minute chart shows:

SP500

Nasdaq Also Going Sideways

The technology Nasdaq 100 futures contract follows a similar path, as it trades within an intraday consolidation. The market slightly extended its medium-term uptrend on Friday, but then it continued to trade along the recent local high. The nearest important resistance level is at around 7,650-7,700. On the other hand, the support level is at 7,600. The Nasdaq futures contracttrades along its last week’s local highs, as we can see on the 15-minute chart:

Stock

Microsoft at Another New Record High

Let's take a look at the Apple, Inc. stock (AAPL) daily chart (chart courtesy of http://stockcharts.com). The stock accelerated its uptrend recentlyand it got close to the resistance level of $200.The market continues to trade alongthe medium-term upward trend line:

AAPL

Now let's take a look at the daily chart of Microsoft Corp. (MSFT). The stock reached the new record high on Friday as it extended its recent advance. The market continues to trade alongthe three-month-long upward trend line:

MSFT

Dow Jones Closer to Local High Again

The Dow Jones Industrial Averagebroke above its February local highrecently and it extendedthe medium-term uptrend. The next resistance level is at around 26,800-27,000, marked by the last year’s topping pattern and the record high of 26,951.8. On Tuesday it retraced its recent advance. Then on Friday it got back closer to the local high again:

INDU

Nikkei Breaking Higher

Let's take a look at the Japanese Nikkei 225 index. It accelerated the downtrend in late December, as it fell slightly below the 19,000 level. Then it was retracing the downtrend for two months. In March the market went sideways. Recently the index got close to 21,500-22,000 again. And today it broke above the 22,000 mark:

Stock

The S&P 500 index extended its medium-term uptrend on Friday, as it got the highest since the early October. The broad stock market broke above its week-long consolidation. We previously wrote that it looked like a flat correction within an uptrend. And it did. But will the market reach the September’s record high? We may see some profit-taking action, as stocks trade closer to their resistance levels.

All essays, research and information found above represent analyses and opinions of Przemyslaw Radomski, CFA and Sunshine Profits' employees and associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Przemyslaw Radomski, CFA and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above are neither an offer nor a recommendation to purchase or sell any securities. Mr. Radomski is not a Registered Securities Advisor. By reading Przemyslaw Radomski's, CFA reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Przemyslaw Radomski, CFA, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD retreats after strong NFP, weak German data

EUR/USD is trading below   1.11 after US Non-Farm Payrolls beat expectations with 266K and mixed wage growth. Earlier, weak German data weighed on the euro. Updates on trade are awaited.

EUR/USD News

GBP/USD shrugs off strong NFP, focuses on UK elections

GBP/USD is trading below 1.3150 but off the post-NFP lows. The US gained more jobs than expected. The Conservatives remain in the lead ahead of the debate between PM Johnson and Labour leader Corbyn.

GBP/USD News

US recession? Not so fast, a calm look at the economy and currencies ahead of the NFP

Recent US economic indicators have been downbeat, but they include silver linings and are backed by robust consumption. Valeria Bednarik, Joseph Trevisani, and Yohay Elam...

Read more

Gold drops to fresh multi-day lows on upbeat NFP report

Gold faded an intraday bullish spike to the $1480 area and tumbled to fresh multi-day lows, around the $1465 region in reaction to upbeat US monthly jobs report.

Gold News

USD/JPY: bearish ahead of US employment figures

Japanese data missed the market’s expectations, triggering fresh concerns about the economy. Focus on US employment figures, market players anticipate dismal numbers. USD/JPY is technically bearish could break below the 108.00 level.

USD/JPY News

Forex Majors

Cryptocurrencies

Signatures