With the Fourth of July holiday approaching, equity buyers are trying to close out the shortened trading week with a few fireworks of their own.
The S&P 500 has given buyers the upper hand after moving above its 200-hour moving average, currently at 7471.23, during Tuesday’s session. More importantly, the index has stayed above that key technical level on Wednesday and again today, keeping buyers firmly in control of the near-term bias
That support has helped fuel another move higher, with the index extending to a new session high of 7540.45 after finding buyers near 7495.14 earlier in the day. As long as the price remains above the 200-hour moving average, buyers continue to hold the technical advantage.
Looking higher, the next target comes in at the June 15 swing high of 7577.92. Above that sits the record high at 7620.90. A move through those resistance levels would signal that buyers are ready to launch another round of upside fireworks into the holiday weekend.
The Nasdaq 100 has been slower to join the celebration.
The index reclaimed its 100-hour moving average on Tuesday, now at 25,957, but the more important test remains the 200-hour moving average, currently at 26,215.71. Buyers have pushed above that level on multiple occasions this week, but each breakout attempt has quickly run out of steam, allowing sellers to wrestle back short-term control.
Today, however, the Nasdaq is once again knocking on that door. The index reached a session high of 26,236.19 and is currently trading at 26,229, just above the 200-hour moving average. Buyers now need to prove they can hold that level. A sustained move above it would represent an important technical victory.
If that breakout gains traction, traders will target the June 18 swing high at 26,559.74, followed by the June 16 swing high at 26,788.62. Beyond those levels, the all-time high at 27,190.21 comes into focus.
The roadmap is straightforward. The S&P 500 has already lit the fuse by holding above its 200-hour moving average. The Nasdaq is still trying to do the same. If buyers can keep control above that key technical level, the stage would be set for the rally to finish the holiday-shortened week with a Fourth of July grand finale.
This article was written by Greg Michalowski at investinglive.com.
