S&P 500 reaches new record high as tech stocks rally

October 30, 2017 10:17 AM

Intraday trade: Our Friday's intraday trading outlook was bearish. It proved wrong because the S&P 500 Index gained 0.8% following higher opening of the trading session. The S&P 500 Index reached our intraday stop-loss level of 2,580. There have been no confirmed negative signals so far. On the other hand, we still can see some short-term overbought conditions. Therefore, we prefer to be out of the market today, avoiding low risk/reward ratio trades.

Our intraday outlook is neutral today. Our short-term outlook is neutral, and our medium-term outlook is neutral: Intraday outlook (next 24 hours): neutral; Short-term outlook (next 1-2 weeks): neutral; Medium-term outlook (next 1-3 months): neutral.

The main U.S. stock market indexes gained between 0.1% and 2.2% on Friday, as investors reacted to better-than-expected tech stocks quarterly earnings releases. The S&P 500 Index has reached new record high at the level of 2,582.98, around five points above last week's Monday high. The Dow Jones Industrial Average was relatively weaker than the broad stock market, as it gained just 0.1%. It remained slightly below its October 24 all-time high of 23,485.37. The technology Nasdaq Composite was relatively stronger, as it reached new record high at the level of 6,708.13, following a daily gap up. The nearest important level of support of the S&P 500 Index is at 2,575-2,580, marked by previous level of resistance. The next support level remains at 2,565, marked by recent local lows and local highs. The support level is also at 2,545-2,550, marked by last Wednesday's daily low, among others. On the other hand, potential resistance level is at around 2,600. The S&P 500 iIdex extended its over eight-year-long bull market on Friday, as it reached new record high closer to 2,600 mark. Will the bull market continue? Or is this some topping pattern ahead of downward reversal? There have been no confirmed negative signals so far. However, we still can see medium-term technical overbought conditions:

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