The strong close in US indices overnight now cleared up the near term direction. DOW closed up 213.59 pts or 0.87% at 24786.63. S&P 500 gained 28.55 pts or 1.07% to 2706.39. NASDAQ was even better, rising 124.82 pts or 1.74% to 7281.10. All three indices took out nearly flat 55 day EMA respectively.
DOW’s break of the near term trend resistance at the same time confirms that fall from 25800.35 has completed 2344.52. For the near term further rise could be see back to 25800.35 first. But then, rise from 23344.52 is still having a somewhat corrective look. It’s likely just a leg inside the whole corrective pattern from 26616.71 high. Hence, it could start to feel heavy again when it approaches 25800.35.
For S&P 500, first hurdle will be trend line resistance at 2746, and then 2081.90 resistance.
