Both NASDAQ and S&P 500 closed at new record highs overnight. NASDAQ’s consolidation form 14175.11 should have completed at 13002.52, and the long term up trend should be resuming. Based on yesterday’s strong close, buying momentum might accelerate further this week, subject to reactions to FOMC statement and projections. We’re now looking at next medium term target at 61.8% projection of 10822.57 to 14175.11 from 13002.53 at 15074.39. In any case, outlook will stay bullish as long as 55 day EMA (now at 13660.23) holds.
As for S&P 500, it’s staying healthily in medium term up trend, well inside channel and above rising 55 day EMA. Outlook will also stay bullish as long as 55 day EMA (now at 4135.30) holds. Next target is 100% projection of 2191.86 to 3588.11 from 3233.94 at 4630.19.
