US Stocks May Sustain Rally with Earnings and Employment Data

The S&P 500 (SPX) has entered overbought territory with an RSI of 78.8, increasing the risk of a short-term correction or consolidation. While the MACD remains positive and confirms the uptrend, it suggests that momentum may have peaked. Although the news headline is positive, the market appears to have largely priced in this optimism. Therefore, rather than a new rally, a search for equilibrium at current levels can be expected.

GOOGL shares closed up 3.35% at 397.80, with the RSI entering overbought territory at 71.4. The MACD remains positively above the signal line, though the gap has narrowed. While the headline reflects general market optimism, technical indicators suggest an increased likelihood of short-term profit-taking or sideways movement. Therefore, it is difficult to give a clear directional signal; further catalysts are needed for the uptrend to continue.

NDX showed strong performance, rising 3.1% in the last 24 hours, but its RSI entered overbought territory at 84.8. The MACD remains positive and maintains an upward trend, with the price trading above both the 20-day and 50-day moving averages. While the news headline is positive, overbought conditions increase the risk of a short-term correction or consolidation. Therefore, a neutral stance on direction is advised, and investors are recommended to be cautious at current levels.

Brent crude is in oversold territory (RSI at 20) and trading well below both its 20- and 50-day moving averages, indicating potential for a short-term recovery. Positive momentum in US equities could support oil demand. However, a sharp decline of approximately 10% over the past 24 hours and a negative MACD below the signal line suggest upside may be limited. Therefore, a slight short-term rise is possible, but confidence is moderate.