Last week was a remarkable week for the market in what was the biggest test of 2017 as stocks exhibited the kind of resolve that was clearly for me, a buy signal.

It’s not just stocks that climbed off the canvas, but they also were led by industrial, materials, and energy names. These are the building blocks of our economy. 

They need a major capital infusion, and they pay good wages to workers around the nation, particularly in the heartland.

However, major indices didn’t completely recover, and some areas such as financials were struggling prior to that big dip.

That big dip comes with its catalyst – political hysteria out of Washington, D.C., we know it’s not over, and the daily hits from anonymous sources will probably be as regular as the White House press conferences.

I’ve heard from a lot of viewers that made big money in the last couple of sessions. And while I preach a longer-term buy and hold approach, this was the perfect dip for traders.  As for longer-term investors, these are the critical resistance points.

• S&P 500 = resistance begins at 2,388 the breakout with a close above 2,400
• NASDAQ = resistance begins at 6,105 and the breakout through 6,169
• Dow Jones Industrial = resistance begins at 20,850 with a close above 21,000; that’s the green light to load up

Earnings Scorecard

The magnificent earnings season continued last week, and guidance improved enough for the S&P 500 forward price-to-earnings (Forward P/E) to come down to 17.3 from 17.6 in just a single week.  Additional highlights include:

• 95% Reported
• 64% Beat Revenue
• 75% Beat Earnings
• 9 Sectors Growing Fast Since March 31
• 33 Guided Higher
• 68 Guided Lower

With President Trump heading to the next leg of his foreign trip and good news from the Saudi Arabia visit, there’s a chance some of the political noise will fade at least for the moment; that should allow the good solid fundamental story of this market to take center stage for investors.