Better-than-expected earnings reports especially from technology sectors pushed Nasdaq composite index into record territory. For the week, S&P 500 index closed at 2117, up 1.75%, Dow Jones Industrial Average gained 1.42%, and Nasdaq composite index increased 3.25%.
S&P 500 index is again trading at the top of the trading channel between 2040 and 2120. The index looks to be ready to break the channel on the upside as its momentum indicator is turning upward in the weekly chart.
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| Weekly chart of S&P 500 index |
We have discussed the weekly chart patten of oil price index, $WTIC, a few times before. In the weekly chart below, one can observe clearly the text book "W" shape bottom formed in the past few months. The index is reaching its 28 week moving average at $60 as indicated in my blog dated 3/27. With its high momentum, the index may overshoot and break above the resistance. However the first resistance after a sharp decline ususally is the strongest. It will be interesting to see how the index behaves in the next few weeks.
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| Weekly chart of Spot Oil Price |
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