Rally Friday afternoon saved Wall Street from its worst weekly loss since beginning of the year. President Trump's tweet about hiking tariff on China imports to 25% starting Thursday midnight shocked the investors and initiated the decline of stocks for the week. Friday afternoon, stocks staged a reversal rally as Treasure Sectary Steven Mnuchin calmed the markets by saying that the US-China trade negotiation were progressing well, and Federal Reserved officials also indicated its willingness to lower interest rate under the circumstance. For the week, S&P 500 index closed at 2881 down 2.18%, Dow Jones Industrial Average lost 2.12% and technology laden NASDAQ composite index decreased 3.03% for the week
S&P 500 index started to move toward its 28 week moving average as we pointed it out 3 weeks ago. With the decline this week the index closed at 2881, about 3% above its 28 week moving average but only 2.5 % from its high of 2954. We think the index is entering a consolidation phase. Looking down, we see the next support level at 2800 and a stronger support at 2600 if it gets there. The best scenario is for the index to move side way with small downward bias to work out its 26% gain since December last year, and wait for the moving average to catch up. It will be interesting to see how the index go from here.
 |
| Weekly chart of S&P 500 index |
S&P 500 index started to move toward its 28 week moving average as we pointed it out 3 weeks ago. With the decline this week the index closed at 2881, about 3% above its 28 week moving average but only 2.5 % from its high of 2954. We think the index is entering a consolidation phase. Looking down, we see the next support level at 2800 and a stronger support at 2600 if it gets there. The best scenario is for the index to move side way with small downward bias to work out its 26% gain since December last year, and wait for the moving average to catch up. It will be interesting to see how the index go from here.
No comments:
Post a Comment