U.S. stocks started a traditionally healthy month on strong footing on Friday after solid jobs figures, but the S&P 500 may need help to break to new multi-year highs.
The S&P hovered near 1,333, a significant level as it represents double the 12-year low hit in March 2009. It is close to the 1,344 representing the S&P's 2011 high, its highest since June 2008.
"There's a lot of congestion in terms of price action around these levels and I wouldn't expect the market to break to new highs in the next weeks," said Paul Zemsky, head of asset allocation at ING in New York.
Strong job growth and supportive comments on Fed policy from influential New York Fed Bank President William Dudley were supportive, but the market is looking to forthcoming earnings to kick the rally into a higher gear.
U.S. employment grew solidly for a second month in March and the jobless rate hit a two-year low of 8.8 percent.
"Once we get to earnings and get confirmation companies continue to show strength, I think we'll make new highs on the S&P. But a couple of weeks of consolidation seems like a good thing to happen," Zemsky said.
Dow Jones Industrial Average
(DJI: ^DJI )| Index Value: | 12,376.72 |
|---|---|
| Trade Time: | 4:02PM EDT |
| Change: |  56.99 (0.46%) |
| Prev Close: | 12,319.73 |
|---|---|
| Open: | 12,321.02 |
| Day's Range: | 12,321.02 -12,419.71 |
| 52wk Range: | 9,596.04 -12,454.50 |
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