Stocks had a great day Friday-SPoos were up 27.25, about 3.2%. Friday’s rally also augurs well for further advances for stocks.
Friday’s rally broke the down trendline off the January highs, and was enough to pull MACD into a bullish crossover. In the short run, this puts them in an intersting position. Momentum (the bottom panel of the chart) is giving a short sell signal for Monday. In addition, Friday’s advance stopped at the 50% retacement of the January selloff, and the late January high at 876 will also be resistance. It appears that stocksmay need to take a short breather, but look for these resistance points to be taken out, with 900, then the January high at 942.75 as upside targets.
Daily eMini SP Chart
