The NASDAQ 100 closed unchanged on Friday as it consolidated some of this week’s rally. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are overbought and are turning neutral hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 1410.36 would confirm that a top has been posted. If June extends this week’s rally, the 50% retracement level of the 2008-2009-decline crossing at 1566.62 is the next upside target. First resistance is today’s high crossing at 1513.00. Second resistance is the 50% retracement level crossing at 1566.62. First support is the 10-day moving average crossing at 1443.60. Second support is the 20-day moving average crossing at 1410.36.
The S&P 500 index closed lower on Friday due to profit taking as it consolidates some of this week’s rally. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are overbought and are turning neutral to bearish hinting that a short-term top might be in or is near. If June extends this spring’s rally, the reaction high crossing at 979.80 is the next upside target. Closes below the 20-day moving average crossing at 910.13 would confirm that a top has been posted. First resistance is today’s high crossing at 957.20. Second resistance is the reaction high crossing at 979.80. First support is the 10-day moving average crossing at 920.15. Second support is the 20-day moving average crossing at 901.13.
The Dow closed higher on Friday despite today’s bearish unemployment data, which indicated that unemployment has reached 9.4%. Profit taking tempered early gains and the mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If the Dow extends this spring’s rally, January’s high crossing at 9088 is the next upside target. Closes below the 20-day moving average crossing at 8482 would confirm that a short-term top has been posted. First resistance is today’s high crossing at 8839. Second resistance is January’s high crossing at 9088. First support is the 10-day moving average crossing at 8561. Second support is the 20-day moving average crossing at 8482.
