Major indices rose for the week boosted by rebounds in technology sectors and small cap stocks. S&P 500 index closed at 1900, up 1.21%, Dow Jones Industrial Average gained 0.7%, while Nasdaq composite increased 2.33% for the week.
S&P 500 index advanced to the top the trading channel and stands at the psychological barrier of 1900. It appears that the rally is slowly taking shape at a slower growth rate as we have discussed a few weeks ago. Seven weeks ago, we saw S&P 500 index approached the same level but failed to break above it. At that time, the technology and small cap sectors were in a selling correction phase. Without broad based market support, S&P 500 index fell and went side way since. This time, Nasdaq composite index is rebounding from the support and gaining momentum as observed in its weekly chart. With broad based market support, S&P 500 index looks to be able to break the 1900 level and keep the rally going.
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| Weekly Chart of S&P 500 Index |
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| Weekly Chart of NASDAQ Composite Index |
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