State Street (STT) - Get State Street Corporation Report has been surging since the opening bell. The stock began the session slightly higher, but has been steadily climbing as investors digested the first-quarter results. At midday, STT is up more than 3% and is one of the top 10 gainers in the S&P 500. This impressive move has driven shares back up to the 2017 peak set back in January. Once the stock clears this heavy resistance area, it will have plenty of room to run.
Three weeks after STT's powerful post-election breakout, the stock began to show signs of upside exhaustion near $82.00. The stock managed to put in a slightly higher high in early January, but it was clear a consolidation was on the way. STT spent the next three months treading water in a narrow range while support near the Nov. 9 breakout point held the lower band. With Wednesday's news-inspired spark, State Street is set up well to end this healthy consolidation with a fresh rally leg.
In the near term, STT investors should take on a much more positive view of the stock. Wednesday's ramp has left behind layers of support between $81.00 and $83.00. If a bit of back-and-fill trade is needed before the 2017 high is convincingly taken out, this area will offer low risk entry if retested. One thing is clear, STT is far from overbought and could travel sharply higher from current levels.