The U.S. stock market indexes sustained their recent uptrend on Friday, as investors hoped for better than previously expected quarterly earnings releases and further monetary easing by the Fed. However, the daily changes were mixed, with technology sector stronger once again. The broad market S&P500 index was up 0.3%, remaining slightly below its May 22 all-time high of 1,687.18. It is the nearest resistance level now and a possible short-term turning point, as we can see on the daily chart:
The breakout above the May 22 high would give a positive signal, although a correction of the recent uptrend cannot be excluded here, as there is some risk of a double top pattern developing. At least it is in case of the S&P500 index; the technology stocks Nasdaq Composite index keeps marching higher. In the short term the S&P500 futures contract (CFD) continues to creep higher since the last Wednesday’s after-hours quick move up. The price is still above its short-term upward trend lines, as the 15-minute chart shows:
Before the opening of trade today there will be some key economic data announcements: Retail Sales Report and Empire State Manufacturing Index at 7:30 a.m. The stock index futures are pointing to a slightly higher open now as the main European stock markets have gained 0.5%.
Thank you,
Paul Rejczak