Stocks rallied yesterday, shifting the balance of sentiment back in favor of the bulls.
The S&P 500 faced mild selling pressure early but quickly bounced at its recent support above 1340. It then struggled briefly at its 10-day moving average, which we identified yesterday as a decisive short-term level. Once it broke that resistance, buyers streamed into the market and drove the index to its highest level since last May.
The quick rebound from below its 10-day moving indicates that the buying power on the sidelines continues to outweigh the selling potential. The Nasdaq also bounced at its 10-day moving average, and the Russell 2000 closed above its 10-day after drifting below it during the last week.
The overall picture remains bullish, though the SPX's advance could be slowed as it pushes against last year's highs. Another long-term consideration that favors the bulls is that the 200-day and 200-week moving averages on the SPX are just now turning positive.
Nasdaq 100 (NDX)
Support remains at 2553.95, 2537.64, and 2504.16. There is new resistance at Wednesday's intraday high of 2600.96, then long-term peaks of 2594.42 and 2749.65.
S&P 500 (SPX)
Support remains at 1340, 1335.59, and 1285.50. Resistance moves up to 1359, followed by 1370.58 and 1390.12.
Russell 2000 (RUT)
Support remains at 810.19 and 800.22. Resistance is at 833.02 and 843.40.
More From optionMONSTER
There are no comments yet