The S&P 500 rallied 0.3% to 2,628, and is on track to check off a couple technical achievements needed to mark a “near-term positive,” according to J.P. Morgan technical strategist Jason Hunter. He said sustained closes above 2,620, and a rally through 2,650, would help confirm the potential bullish momentum divergences now present on intraday charts. Bullish momentum divergences refers to the fact that while prices on hourly charts made a lower low on Friday, the Relative Strength Index (RSI), which tracks how the magnitude of recent gains compare with the magnitude of recent losses, made a higher high. Hunter said another technical positive would be if the RSI closed above the 50 level, which it hasn’t been able to do since the S&P 500 started selling off on Jan. 30. The RSI reached a high of 50.91 earlier Monday, a higher high than the 48.39 seen early last Wednesday, before slipping to 46.98 in recent trade.
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