The S&P 500 fell slightly on Friday, retreating from record levels, while the strength in major technology names pushed the Nasdaq Composite to another all-time high.

The broad equity benchmark dipped 0.3% to 3,841.47 after closing at a record in the previous session.  

Hopes for a robust earnings season from the largest communications and tech companies sparked a rally in mega-cap stocks during the holiday-shortened week, pushing the broader market higher. The Nasdaq climbed 4.2% this week, while the S&P 500 and the Dow gained 1.9% and 0.6%, respectively.

Investors reassessed the outlook for President Joe Biden’s ambitious Covid stimulus plan. A growing number of Republicans have expressed doubts over the need for another stimulus bill, especially one with a price tag of $1.9 trillion proposed by Biden. Meanwhile, Democratic Sen. Joe Manchin has criticised the size of the latest round of proposed stimulus checks. Dissent from either party carries weight for Biden, who took office with a slim majority in Congress.

Cyclical sectors, or those that would benefit most from additional stimulus, have put pressure on the broader market this week. Energy, financial, and materials were the biggest laggards, losing at least 1% each this week.

Meanwhile, with the S&P 500 up another 2.3% this year, some investors believe the market may be getting ahead of itself as hiccups with the vaccine rollout and economic reopening remain likely going forward.

Plan A : Long if market supported firm above 3828. Targets are 3843, 3859 and 3877.

Plan B : Short if market failed to support above 3828. Targets are 3805, 3799 and 3770.
 

U.S. stock index futures rose in overnight trading on Sunday, as Wall Street prepares for the busiest week of earnings, which will include reports from some of the largest tech companies.

The Nasdaq rose 0.1% to another record close of 13,543.06, supported by Big Tech.

Apple rose another 1.6% Friday, bringing its weekly gain to 9.4%. Facebook and Microsoft also rallied 9.2% and 6.3%, respectively, this week. These big tech companies are scheduled to report earnings next week.

The Nasdaq advanced 4.19% last week for its best week since November and fifth positive week in six as shares of Big Tech names pushed the index to a new all-time high.

This coming week 13 Dow components and 111 S&P 500 companies are set to report earnings. Among the quarterly reports on deck include those from Apple, Microsoft, Netflix, Tesla, McDonald’s, Honeywell, Caterpillar and Boeing.

Plan B : Short if market failed to support above 13419. Targets are 13379, 13335 and 13296.
 

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Plan A : Attempt buy only if oil price trades firmly above 51.5. Targets are 52.2 and 52.8.

Plan B : Consider short if oil price surges but fails to breach above 52.8. Targets are 52.2 and 51.5.