Broader US stock indexes ended last week stronger, with the S&P 500 and Nasdaq rising on Friday. However, despite the gains, each index remained trapped below its 100-hour and 200-hour moving averages – a sign that sellers still maintain a short-term technical advantage. That picture has changed today.
Both indices opened with bullish gaps, and in the process, they rose above the 100-hour and 200-hour moving averages. This is the first time either index has traded above both key technical levels since June 4, shifting the near-term bias in favor of buyers. As a result, these moving averages are now critical levels for identifying risks. As long as the price remains above them, the bulls maintain control.
For the S&P 500, the 100-hour moving average is at 7,489.11, while the 200-hour moving average is at 7,441.86. The index is currently trading near 7,545.29, up 114 points or 1.54% on the day. A return below the two moving averages would weaken the bullish outlook and return the advantage to the sellers. Until then, traders can focus on the benchmark at 7620.90 as the next major upside target.
The Nasdaq tells a similar story. The index rose above its 100-hour moving average at 26,382.22 and its 200-hour moving average at 26,228.87. It is currently trading near 26,501, up 612 points or 2.37%. As with the S&P, maintaining price action above those key moving averages keeps buyers in charge. On the upside, traders will first look to 26826.97 as an interim target, with an all-time high of 27190.21 looming next.
Bottom line: The Bulls are back on the attack. They charge, they gloat, they take back control of Wall Street. The technical roadmap is clear — staying above the 100-hour and 200-hour moving averages, the path of least resistance remains higher.
