The SPX closed with a gain of 33.57 points or 1.38% at 2051.51. It finally tagged the March 11, 2015 close at 2040.24 and broke above a short term declining trendline. The next potential resistance level could be at 2079.11 and the next potential support level could be at 2020.86 or at 1993.48.
(click on the chart to enlarge)
From the daily chart of the SPY, the 207.95 could be the next potential resistance level and the 202.89 or 199.84 could be the potential support level.
The Nasdaq 100, NDX closed with a gain of 89.69 points or 2.03% at 4503.22. GOOGL and AMZN reported their earnings after the market closed, and the market reacted posititvely to their earnings. If the enthusiasm can be sustained, the NDX could log in another huge gain tomorrow. In the meantime, the potential resistance level to monitor is the April high at 4562.33 or the 4643.83 and the potential support is 4349.93.
The Russell 2000 closed with the smallest gain amongst all the major indices. It closed with a gain of 9.58 points or 0.84% at 1154.52. It is still barely above the declining trendline and it is being held back by the weakness in the biotech sector. The potential resistance remains to be at 1180.06 and the support level is the August 24 close at 1104.05.
After a huge up day and breaking through some key levels, one shouldn’t be surprise to see a near term pullback. Any pullback will likely be temporary as the FOMC will meet again next week and it is unlikely a rate hike will occur from this meeting. As economic weakness starting to emerge across global and the US economy, rate will likely to remain low into 2016. This bad news good news scenario will push the market higher with the expectation of more QE from central banks to stimulate the economy. In addition, AAPL and FB will report their earnings next week. The earnings from these two market movers could help set off the rally into November.
