The S&P 500 index closed slightly higher on Friday as it extended this week’s rally above the 10-day moving average crossing at 907.13. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are turning bullish hinting that additional short covering gains are possible. Closes above last Friday’s high crossing at 923.00 are needed to confirm that a low has been posted.
If September renews this month’s decline, the reaction low crossing at 874.00 is the next downside target. First resistance is today’s high crossing at 920.00. Second resistance is the 20-day moving average crossing at 921.23. First support is Tuesday’s low crossing at 884.30. Second support is the reaction low crossing at 874.00.
The Dow closed lower due to profit taking on Friday as it consolidated some of Thursday’s rally. The low-range close sets the stage for a steady to lower opening on Monday.
First resistance is the 10-day moving average crossing at 8457. Second resistance is the 20-day moving average crossing at 8602. First support is Thursday’s low crossing at 8259. Second support is the reaction low crossing at 8221.
