The S&P 500 index posted gains for the second consecutive week closing at a new all-time high at 3831.
Investors are betting on higher stimulus checks as the Biden administration takes office in two weeks.
The equity index managed to close higher on Friday despite a poor nonfarm payrolls report.
The Democrats now control the US Senate. This is likely to make President-elect Biden push through with his reforms a bit more easily.
The current pace of gains could see a possible retracement.
The 9th of November highs near 3674 remains the key level of support for the moment. Therefore, any declines will see prices testing support near this level.
As long as this price level holds, there is scope for the S&P 500 to continue to push higher.
Only a strong close below the 3674- 3588 level will see a shift in the bias to the downside.