“Today the S&P 500 has risen above its 50-day exponential moving average following a teasing four day jaunt beneath it. The next hurdle to overcome is trendline resistance of a channel drawn down from the May 2 high,” said Tarquin Coe, technical analyst at Investors Intelligence, in a note to subscribers Friday.
SPDR S&P 500 ETF (NYSEArca: SPY) gained 0.4% Friday afternoon.
“Overcoming that level, with a close above it today, will leave the index well positioned for a rally from Tuesday. The two weeks following Memorial weekend are typically strong,” the analyst wrote.
Gold stocks were also strong Friday.
“Conditions are not overbought and as such the bounce should continue in the weeks ahead, likely up to the top of the range at $64, some 10% from current levels,” he added.