Steady Progress: Market Holds Range and Climbs Higher


Joseph Rangel

Mar 29th 2023  .  3 min read

Steady Progress: Market Holds Range and Climbs Higher

After the market spent the second half of the previous trading session rotating into the Nasdaq futures from the Dow Jones futures, the Nasdaq continued to lead higher overnight. One tactic big money on Wall Street uses is to flood big-cap technology stocks on a dip in the market to bring the overall market higher. This tactic was on full display to begin the week as the market trickled lower and money began to flow into Technology stocks such as Apple Inc. (AAPL). AAPL is now only 12% from its all-time high. 

When the opening bell sounded, the S&P 500 futures had opened above the previously discussed range established by the previous week’s high at 4,033 and the 50-day Simple Moving Average (SMA) at 4,030. Holding this range in the pre-market session and now the opening drive, the tone had been set for the day. Early profit-taking would be seen across the market after a move made during the pre-market. 

Market Holds Critical Level of Support

As the S&P 500 futures looked to show signs of weakness, the actual test of strength would be had at the top of the now support zone. The price could continue higher if the S&P 500 futures could hold the 4,030 level. Although the rest of the day would be a volatile ride, it did continue higher gradually after remaining above this line in the sand.

For most of the session, the hold of the 50-day SMA price action was volatile and choppy as the market slowly worked higher. Today was another session where the volume in the market was lower than usual, and because of this, the market struggled to find a continuation in either direction. 

Rotation Back Into Tech for a Push Higher

Another resemblance to yesterday’s session was the late rotation back into the technology sector. During this late rotation, the market was able to gear up to make one final push toward the high of the day. The market got back to the high of the day and was strong enough to push through and close near the highs. Look for low volume and volatility to continue as this quarter ends. 

Economic Events Tomorrow 

The first event of the day is the GDP revision which will be announced simultaneously with the weekly jobless claims at 8:30 a.m. Eastern. Later in the day, several Federal Reserve (Fed) speakers will take the mic. The three speakers scheduled will be Boston Fed President Collins, Richmond Fed President Barkin, and Minneapolis Fed President Kashkari. Collins will start at 12:45 p.m. Eastern, and Kashkari will wrap up the speaking at 1 p.m. Eastern. 

Slow Grind Higher Leaves Indices Green

The Nasdaq and the S&P 500 were Positive to close the session. The S&P 500 futures closed up 1.43%, adding 57 points, while the Nasdaq futures closed up 1.79%, gaining 228 points. The Dow Jones futures followed, closing up 0.97%, an increase of 316 points.