FxWirePro:S&P500 jumps for fourth consecutive day on account of better than expected earnings from tech companies, good to buy on dips

S&P500 continues to trade higher in Feb after 7.9% jump in the month of Jan best month since 1989. The index jump was mainly due to better corporate earnings by tech companies and dovish Fed.US Fed was more dovish and pledges ‘patience’ stance for further moves .Alphabet inc has posted better than expected results yesterday with net income at $8.95 billion compared with losses of $3.02 billion.But increasing advertising costs and declining margins is putting pressure on the stock price. The index hits high of 2729 and is currently trading around 2728.

Short term trend is bullish as long as support 2670 holds. Any break below 2670 confirms minor weakness and a dip till 2637 (300- 4H EMA)/2590/2550/2530 likely. Any daily close below 2500 targets 2465/2437/2397. Any further bearish continuation only below 2330.

On the higher side near term resistance is around 2740 and any break above targets 2800/2820.

It is good to buy on dips around 2700-05 with SL around 2670 for the TP of 2820.