If Today's Action Above 1,335 Holds, a Move to the May Neckline Break of 1,370 May Be in the Cards
S&P 500 and Nasdaq 100 share similar landscapes.
Friday the S&P 500 Index (SPX) opened down .045% at 1,335, above resistance, and on Monday the market was still reacting to this bullish signal. It soon became evident that the headline-driven move was initial excitement and an attempt to grab alpha as the SPX gave back most of its gain late afternoon to close at 1,345.
If today’s action above 1,335 holds, a move to the May neckline break of 1,370 is likely to be in the cards. After this, if the bulls can take out 1,370 as well, the SPX to yearly highs of ~1,400 is next to follow. If the bulls cannot muster enough momentum to take out yesterday’s high, a longer term channel would begin to take form between ~1,270 – 1,370.
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The landscape is similar for the Nasdaq 100 Index (^NDX). The index began up 0.83% and lead the day by breaking through neckline resistance at 2,570. This again could be attributed to investors rushing toward the aforementioned technology alpha as they left the banks in the dust. A sustained move from here could bring the index to the May neckline break of 2,640. If 2,640 isn’t broken, a longer term channel between 2,460 – 2,640 would begin to take shape.
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Until either of the prior cases is settled, market clarity will remain far from reach.
I hope this helps and finds you well.
Editor's Note: Read more at Tesseract Asset Management.
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