The U.S. stock market indexes gained 0.1-0.5% on Friday, as investors’ sentiment slightly improved following Nonfarm Payrolls number release. The S&P 500 index extends its short-term fluctuations following a breakout above the level of 2,800. It currently trades just 1.1% below the January’s 26th record high of 2,872.87. The Dow Jones Industrial Average gained 0.5% and the technology Nasdaq Composite gained 0.1% on Friday.

The nearest important level of support of the S&P 500 index is at around 2,800, marked by the previous resistance level. The support level is also at 2,780-2,790. On the other hand, the nearest important level of resistance is at 2,850, marked by the late July local highs. The next resistance level is at around 2,870, marked by the mentioned January’s all-time high.

The broad stock market got closer to its January’s record high in the late July, as investors’ sentiment improved following quarterly corporate earnings, economic data releases. The S&P 500 index broke above the level of 2,800, but then it failed to continued above 2,850 mark. Is this a topping pattern or just some relatively flat correction within an uptrend. For now, it looks like a correction. However, there are still two possible medium-term scenarios – bearish that will lead us towards the February low again, and the bullish one – breakout higher towards 3,000 mark. The latter one is getting more and more real. The S&P 500 index still seems to be “climbing a wall of worries” here:

Uptrend to Continue?

The index futures contracts trade between +0.1% and +0.2% vs. their Friday’s closing prices. So the expectations before the opening of today’s trading session are slightly positive. The main European stock market indexes have gained 0.2-0.4% so far. There will be no new important economic data announcements today. The S&P 500 index will probably extend its short-term fluctuations following last month’s breakout above the level of 2,800. If the market breaks above the level of 2,850, we could see more buying pressure.