US stocks resumed recent up trends overnight as supported by the pandemic fiscal stimulus. All three major indices, DOW, S&P 500 and NASDAQ closed at new record highs. DOW’s close above 38.2% projection of 18213.65 to 29199.35 from 26143.77 at 30340.30 is taken as a sign of solid underlying buying. We might see upside momentum intensify as traders are back from holidays next week. Tentatively, next target is 61.8% projection at 32932.93.
NASDAQ also matched corresponding level of 38.2% projection of 6631.42 to 12074.06 from 10822.57 at 12901.65, but closed slightly below. Another take on the level could be seen before weekend. Sustained trading above there will further affirm overall bullishness in the markets, and pave the way to 61.8% projection at 14186.12.
S&P 500 is lagging behind in this perspective as it’s still a bit below 38.2% projection of 2191.86 to 3588.11 from 3233.94 at 3767.30. We’ll keep an eye on SPX and firm break above they level should seal the case for a strong bullish Q1 in the US markets, as well as global markets too.
