Another positive week across the board with good news as the employment situation bettered in July. Small Cap and Tech continues to lead the market higher which is common when pulling out of recessions in past.
We saw the bullish internals outweigh the bears this week with high/low closes of +1938/-536 on the NYSE, however +1167/-1003 on the NASDAQ. A pause could be in store, but sideways movement would be considered a positive thing at this point.
The S&P500 came right up to our 1007 target level, closing just a bit higher at 1010 on the week. We are also at the 38.2% Fibo retracement level and are showing no signs of slowing. On a monthly chart we see the next potential target to be the 1040-1060 area.
When a stock or market moves up at such a fast rate without pauses or sideways action it doesn’t give it time to create support levels, looking at the S&P we see a wide support level back down at 840-940.