The market may also discounting a solution to the Ukraine war which would be a positive if it frees up the oil and other commodities.
As the seasoned Wall Street traders like to say “Don’t fight the tape”.
Despite the gains in the NASDAQ, the price had been beaten down, and the rise in that index is still on the lower half of the high to low range since November.
Looking at the daily chart below, the price yesterday moved to a high near the 38.2% retracement at 13952.28, but backed off. Today, the index opened higher and continued higher.
The next target comes in at the 14163.73 to 14181.69 (swing high from February 15 and the swing low from going back to October 4, 2021). A move above those levels would next target the midpoint of the range since the November high at 14383.79. Get in the upper half and the technical picture is more brighter – despite the run up in yields.
For the S&P index, it moved and closed above the 200 day moving average at 4473.11. It also moved above and closed above the 50% of the range since the the January all-time high near that midpoint level comes in at 4466.64. The next target comes in at the 100 day MA at 4549.62.
The final numbers today are showing:
Dow industrial average rose 254.45 points or 0.74% at 34807.45
S&P index rose 50.43 points or 1.13% at 4511.60
NASDAQ index rose 270.37 points or 1.95% at 14108.83
Russell 2000 rose 22.40 points or 1.08% at 2088.34.
Please strong day across the board for the major indices with gains of greater than 1% to near 2%.