Market Makes Mild Gains

Last week the Nasdaq and S&P closed up 3 out of 5 days. Volume was above average for the week. The Nasdaq gained +1.03%, the S&P climbed +0.60%, and the Dow performed the worst by falling -0.20%. Both the Nasdaq and S&P started the week below their respective 10 SMAs, but they managed to close above the 10 SMAs by the end of the week. 

 

Market breadth closed in positive territory on Friday. RSI strengthened up to 72 (Nasdaq). So far, the market has held above the 1,800-1,810 level on the S&P. There is still a high risk of correction, but if the market holds the current price levels, it would suggest a retest of the late December highs may be in order. At this time, the market is still above the weekly, daily, and hourly 50 EMAs.