S&P 500 and DOW closed at new record highs overnight on improving growth prospect in the US economy. In particular, the S%P 1500 airlines index jumped more than 4%, indicating some revival in optimism in the sector. Nine of the 11 major S&P sector indices closed higher, led by utilities and real estate.
S&P 500’s rise from 3233.94 is still in progress. As part of the up trend from 2191.86, it’s still on track to 61.8% projection of 2191.86 to 3588.11 from 3233.94 at 4096.82. Though, prior retreat through 55 day EMA, while brief, was a warning of loss of upside momentum. Daily MACD is also limited below down trend line. SPX will need to quickly climb further to press upper trend line to solidify momentum. Otherwise, there is risk of topping around 4096.82.
