The market showed strength on turnaround Tuesday despite a disappointing start to the 1Q earnings season with Tech leading the way higher. Financials stocks were smashed following horrific earnings from JPMorgan (JPM) and Wells Fargo (WFC). Overall, the higher highs were a bullish signal with the major indexes back at levels from early March.
The Nasdaq tapped an intraday high of 8,531 while closing at 8,515 (+4%). Major March resistance at the 8,400 level and the 50-day and 200-day moving averages were recovered with upside potential towards 8,650 on continued momentum.
The S&P 500 settled at 2,846 (+3.1%) after testing a session peak of 2,851. Prior and key resistance at 2,850 was cleared but held with a close above this level signaling additional momentum towards the 50-day moving average and the 2,900 level.
The Dow traded to a high of 24,040 before closing at 23,949 (+2.4%). Current resistance at 24,000 was cleared but held with continued closes above this level signaling additional strength towards 24,250-24,500.
The Russell 2000 rallied to an intraday high of 1,251 while closing at 1,237 (+2.1%). Key resistance 1,250 was cleared but held with a close above this level signaling additional momentum towards the 1,275 level.
I hope this helps you prepare for the trading day. Make it a great one!