US stocks extended record run in holiday trading this week, with all three major indices closing at new record highs. S&P 500’s rally in the past two week is impressive, with strong pick up in upside momentum. Long term channel resistance was taken out without much hesitation.
Overbought condition in weekly RSI shouldn’t limit the rally for now. Current up trend is now on track to 100% projection of 1810.10 to 2940.91 from 2346.58 at 3477.39. Though, strong resistance should be seen around there to bring corrections.
NASDAQ also extended recent up trend and closed above 9000 level for the first time. It’s now facing long term channel resistance. Considering that equivalent resistance was taken out by S&P 500 rather decisively, we’d expect NASDAQ to follow soon. NASDAQ should be heading to 100% projection of 4209.76 to 8133.30 from 6190.17 at 10113.71.
