NextOptions.com Market Outlook for 4/27/2026

Big Week for Earnings on Fresh Highs

The stock market traded in a tighter range throughout much of last week before breaking out to another round of fresh all-time highs on Friday. The move was helped by Intel’s (INTC) impressive earnings results after the company reported better-than-expected numbers while offering a rosy outlook.

Meanwhile, volatility held key resistance levels on the midweek market weakness and is still giving bullish signals. The technical outlook also remains bullish with the v-shape recovery and strong uptrend channels still intact for the major indexes off the March 30th lows.

The Nasdaq tagged a lifetime high of 24,854 while settling at 24,836 (1.6%). Undefined resistance at 24,750 was cleared and held. Rising support is at 24,500.

The S&P 500 closed at at 7,165 (0.8%) after hitting a late day and all-time high of 7,168. Fresh resistance at 7,150 was topped and held. Support is at 7,100.

The Dow traded up to 49,393 but ended lower at 49,230 (-0.2%). Resistance at 49,500 easily held. Support remains at 49,000.

Earnings and Economic News 

Before the open: Verizon Communications (VZ), Domino’s Pizza (DPZ)

After the close: Rambus (RMBS, Celestica (CLS), Nucor (NUE)

Economic News

None

Technical Outlook and Market Thoughts 

For the week, the Nasdaq jumped 1.5% and the S&P 500 added 0.6%. The Dow slipped 0.6% while the Russell 2000 was up 0.4%. Year-to-date, the Nasdaq is higher by 6.5% and the S&P has advanced 4.5%. The Dow has gained 2.5% while the Russell has surged 12.4% this year.

The Russell 2000 traded to a record peak of 2,817 last Tuesday with the 2,800 level holding the past three sessions. Our February 6th price targets were at 2,750-2,800 with multiple closes above the latter likely getting a FOMO rally up to 2,900-3,000. 

Current support is at 2,725-2,700 with backup help at 2,650-2,600. Closes below 2,600 and the 50-day moving average would indicate a near-term top.

The Nasdaq hit a record peak of 24,854 with our revised Price Targets at 24,750-25,250 quickly coming into play. We thought these would hit by summertime, or at some point in 2026, but 24,750 held into the close. There is stretch up to 25,500-25,750 on closes above 25,250.

Rising support is at 24,500-24,250. Closes back below 24,000 could lead to further weakness down to 23,500-23,000.

The S&P 500 hit a record high of 7,168 on Friday. Our January 9th target at 7,150 was cleared and held. We recently predicted closes above this level would be bullish for further gains up to 7,350-7,500 over the next 6-9 months.

Support is at 7,150-7,100. Closes below 7,000 would suggest a near-term peak with retest potential down to 6,800 and the 50-day moving average in play.

The Dow held upper support at 49,000-48,500 throughout much of last week, excluding Thursday’s dip to 48,861. Closes below the latter gets 48,000 and the 50-day moving average back in focus and would likely indicate a near-term top, as well. 

Resistance is at 49,500-50,000 followed by 50,500 and the February 10th all-time top at 50,512.

The S&P 500 Volatility Index (VIX) held resistance levels throughout last week at 20-22. The high for the week was Thursday’s pop to 21.56. Closes above 22.50 could lead to strength towards 24-26 and would confirm near-term market WEAKNESS.

Key support is at 18.25 and the 50-day moving average followed by 17.50. Continued closes below 17.50 and the April 17th low at 16.87 could lead to weakness down to 15-13.50. This would be BULLISH for the market.

The upcoming week will be the heart of the first quarter earnings season with a number of high profile Tech companies stepping up to the plate. After Wednesday’s close, Microsoft (MSFT), Amazon (AMZN), Meta Platforms (META), and Google (GOOG) will announce numbers. 

These results could certainly impact the current v-shape recovery and nice uptrend channels for the major indexes. With the biggest names in Tech reporting this week, we wouldn’t be surprised if there is a short-term market top after Apple’s earnings on Thursday, or into the first full week of May. 

The Fed will be back in the spotlight this week with the central bank widely expected to leave interest rates on hold. Chair Powell will probably continue to talk about the significant uncertainty around the economic outlook. As a side note, the path for Kevin Warsh, President Trump’s nominee for chair, will likely be confirmed in the coming weeks. 

We pointed out the heightened relative strength index (RSI) levels in the major indexes last week. The Nasdaq and the S&P had RSI readings of 75 and 73, respectively, and closed this week at 72.5 and 70. The Russell’s RSI was at 72 and the Dow’s was just below 69 the prior Friday. They are currently at 69 and 63.

We said readings can stay elevated above 70 and overbought levels for weeks and months. RSI levels can also get extended towards 80, and even 90, in some cases. We will be watching RSI levels again throughout the week and into next Friday’s closing bell.

For the year, the Track Record is at 21-3  (86% win rate) for our Velocity Options directional Alerts with FIVE triple-digit winners: IRDM calls 120%; KEY calls 107%; VIAV calls 271% and 319%; and BCRX calls 100%. We almost had our sixth triple-digit winner but CMCSA was stopped out for an 85% win.

Our covered call Alert (Real Wealth) portfolio stands at 7-0 and our Credit Spread newsletter (Red Zone Trades) is at 10-2 (83%). Overall, the Track Records are at 38-5 (88% win rate).

We could have another round of New Alerts across all newsletters this week so stay locked-and-loaded. Don’t forget to signup for Text Alerts if you haven’t done so already.