Equity markets surged on better-than-expected results from Facebook parent Meta Platforms. The news sent the stock up more than 20% and the NASDAQ more than 3.0%, but both closed well off of their highs. The takeaway from the report is that business has bottomed, but there are still hurdles ahead, so investors should be wary of the surge in prices.

The S&P 500 gained more than 1.25% on Wednesday and broke above 4,150. This is a potentially bullish move for the market, but risk is still ahead. The 4,300 level marks the top of a significant resistance range and needs to be broken for the rally to continue. If not, this market may peak soon and begin to move lower. The forward outlook for earnings continues to weaken, and that is what will drive the market into the end of Q1 and start of Q2 2023.