Encouraged by a positive economic outlook and dovish signals from the FOMC, investors are diversifying beyond tech giants like NVDA & META. Confidence in the economy's resilience and the Fed's inflation management has broadened the market rally. Although the Mag 7 stocks continue to dominate XLF and XLE are near ATH and XLI remains strong. Small caps, which have lagged brutally look poised to play catchup. The SPX has gained 27% since late October, while NDX has gained 30%. We have a shorted trading week ahead with markets closed on Good Friday. Traders will look for clues for market direction from some Fed head speeches and PCE data at the end of the week.
SUMMARY
SUMMARY
- NQ posted a 2.77% gain last week after trading in a wide range of 655 pts.
- NQ closed back at the top of the 4 week range near ATH after a 550 pt rally.
- R2 = ATH (18709)
- R1 = LTF 1.272 Fib X (18588)
- S1 = 9 ema (18392)
- S2 = 21 ema (18293)
- Bias remains long but potential for rejection at ATH
- Break below upward trendline would signal potential trend change.
- Positive reation to FOMC. Dovish Fed + OK economy
- Mag 7 had strong week minus AAPL & TSLA
- XLE & XLF near ATH and XLI continuing to showing strength.
- All dips are being bought
- Shortened trading week & end of month
- PCE on Thurs/Fri
- Small caps on breakout watch again
- RSI 59.05| VIX at 13.05 | 10 year 4.20%
