The major US stock indices are picking up some steam to the upside. The major indices are near their highs on the day.
A snapshot of the market currently shows:
- Dow Industrial Average up 128 points or 0.3% at 33645.52
- S&P index of 21.96 points or 0.56% 3914
- NASDAQ index up 90.78 points or 0.85% at 10726.01
Looking at the hourly chart of the S&P index, the prices move back above its 200 hour moving average currently at 3905.43. On Monday, the price gap above the level reaching a high of 3950.57 before rotating back to the downside and closing below the moving average. The move back above – if he can stay above – would tilt the bias more to the upside once again.
A month ago ahead of the CPI, the market was anxious about the data release. The price was testing the 100 hour MA near the close, near 3988. Recall, the CPI came in lower than expected and the price of the major indices shot higher in premarket trading. The S&P gapped up to a high of 4100 in the first hour of trading, but found willing sellers against the level and it was all down hill from their over the next 10 or so days to the low at 3704.49.
WIth the price at 3914, the current price is about 64 S&P points from the level on the CPI eve. The stock market is a bit more subdued. However, going forward if the momentum to the upside continues, traders will be looking toward the 3988 area as a target along with the 4100 level. There are a number of analysts who see that 4100 level as a top end fair value – at least in the near term – given the expectations of continued earnings headwinds from a slower 1H.