The only way is up!

No, this is not that old favourite from the late 90s.

I am talking about major US cash equity indices.

Global Risk-On Surge

US equities gapped higher at the open on Thursday, strengthened by the blowout earnings for Q4 revenue from NVIDIA (NVDA) that encouraged a global bid across risk assets. The stock is now up by an eye-popping 15% on the day after gapping higher at the opening bell, which is likely a relief for some as there were analysts expressing that a notable miss on earnings for the mega-AI tech stock could trigger a sell-off in equities.

Nasdaq Composite Nearing All-Time Highs

As you can see from the charts below, both the Dow Jones Industrial Average (DOW) and the S&P 500 refreshed all-time highs today, clocking 38,994 and 5,068 as of writing, respectively. The Nasdaq Composite, however, has lagged a touch but is fast approaching unchartered territory. For that reason, I want to direct technical eyes to the weekly chart of the Nasdaq Composite (lower right chart). You will note that the index is testing the spirit of channel resistance, extended from the high of 14,446, nestled a whisker south of the all-time high at 16,212. The channel resistance is unlikely sufficient to hamper bulls from eventually navigating to all-time highs, particularly with the week-to-date performance showing price already having reclaimed more than 90% of the prior week’s downside move. Consequently, a close above 16,212 could prove interesting for traders and investors. Some may simply press the (breakout) buy button following a close north of the level; others, more conservative traders, may sit on their hands and wait and see if price retests the breached level as support as a means of confirmation before pulling the trigger.

Along with some other European equity benchmarks, Japan’s Nikkei 225 also clocked a fresh all-time pinnacle after breaching highs set in the 1990s at 38,957.

The chart is quite a picture.

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