The S&P 500 made a new high on Friday, while Twiggs Money Flow rose above its descending trendline, signaling that selling pressure has eased. Expect retracement to test the new support level but respect is likely and would confirm a target of 2600* for the advance.
* Target calculation: 2500 + ( 2500 – 2400 ) = 2600
The Nasdaq 100 has been dragging its feet a bit, still testing resistance at 6000. But Technology stocks are likely to follow the main index, with breakout above 6000 signaling a fresh advance.
Tech giants Amazon and Apple are partly responsible for Nasdaq tardiness, with Amazon retreating from its watershed breakout above $1000. Further decline would be cause for concern — when leading stocks no longer lead — but recovery above $1000 is more likely and would be a bullish sign for the broader market.