MSFT rebound leads SPX back while NYSE A/D line breaks out

US equity markets continue to show signs of resilience following MSFT’s sharp rebound from early losses following its warning of a further slowdown in Sales and weaker outlook for its cloud business. 

SPX managed to completely regain early losses to close flat on the session, rallying over 60 SPX points to finish right at the highs of the session.  As can be seen below this area at 4016-9 has contained prices in recent days.

At current levels, prices are very close to a larger breakout in SPX along with NASDAQ, which already occurred on an equal-weighted basis on Value Line’s Arithmetic index about two weeks ago.

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