Uptrend To Continue?

The U.S. stock market indexes were mixed between 0.0% and +0.1% on Friday, as investors sentiment remained basically unchanged following some economic data announcements along with the third quarter’s ending. The S&P 500 index has reached the new record high of 2,940.91 more than a week ago on September the 21st. It currently trades 0.9% below that high. The Dow Jones Industrial Average gained 0.1% and the technology Nasdaq Composite gained 0.05% on Friday.

The nearest important level of support of the S&P 500 index remains at 2,900. The support level is also at 2,885-2,890, marked by the recent local lows. On the other hand, the nearest important level of resistance remains at around 2,920-2,930, marked by last week’s Monday’s daily gap down of 2,923.79-2,927.11. The resistance level is also at 2,940, marked by the record high.

The broad stock market reached the new record high recently, as the S&P 500 index extended its short-term uptrend above the level of 2,900. Will it continue higher despite some short-term technical overbought conditions? The index is at its three-month-long upward trend line following last Wednesday’s intraday reversal, as we can see on the daily chart:

Positive Expectations, but Will Uptrend Continue?

The index futures contracts are trading 0.6-0.7% above their Friday’s closing prices this morning. So expectations before the opening of today’s trading session are positive. The main European stock market indexes have gained 0.2-0.6% so far. Investors will wait for some economic data announcements today: ISM Manufacturing PMI, Construction Spending at 8:30 a.m. The broad stock market will likely take an attempt at extending its medium-term uptrend today. But will it break above the mentioned September’s record high? It’s hard to say. If it breaks higher, we could see more buying pressure. There have been no confirmed negative signals so far.