The last trading day of the week had started with moderate gains of 0.3 – 0.4% in the indices, nothing was exciting or too positive. By noon, the indices began to rise towards 0.7 – 0.8%. Later on, we saw a correction back to the opening levels, and during the last hour, the market has returned to its daily high area, what has turned to be a decent green closing candle and a bullish sign. At the end of the day:
S&P rose +0.64% to 2792.67, slowly approaching 2800. Next resistance levels: 2800, 2815-20, 2860.
Dow Jones rose +0.7% to 26032, just one more major resistance before the all-time high at 26300. Next resistance: 25900-26000. Support: 25500, 25100.
NASDAQ rose +0.91% to 7527, finally crossed over the 7500 mark. Support levels lie at 7470-500, 7400, 7200-7220. Resistance: 7570, 7670, and 7750-7800.
Nine Weeks of Bullishness
The beginning of the weak looked a bit tired for the major stocks. However, as the week went on, the green arrived at the screens, and one more week ended positively. The resistance levels get breached one after another on the market’s way up.
The money faucet is wide open, and the money is flowing towards the markets, it seems like the economy is growing up.
Another bullish sign comes from the VIX (the fear index) which had dropped another 6.5% to a low of 13.5, which is indicating that the markets are calm and ready to continue the start of 2019 mini-rally.
The past weeks sums up to nine gorgeous weeks for the stock markets: At the moment, the NASDAQ and the DOW face higher while the S&P is facing the significant 2800-2820 resistance area.
The market ignores problems which are quickly forgotten: Regarding the trade war, the recent update is about a 45-day extension, and in general, Donald Trump will likely to seek for an agreement even if he isn’t satisfied (A bird in the hand is worth two in the bush).
The market prices this too, and most of the stocks that only two months ago were 40-50% down from their 2018 high, has already changed direction on the way back up.
The Chinese stocks surged today: in Shanghai, the weather has changed, and the market is starting to skyrocket as many traders wanted to buy today before the bull-train leaves the station.
2019 Responds to ‘Experts Predict Crisis’
Everyone is afraid of a crisis, that’s what “experts” like to say. However, under the current conditions, it seems that there are no other investing alternatives: commodities on the rise, as well as gold, bonds and even crypto and Bitcoin prices are back in green. Cheap money is flooding everywhere, as it turns out that 2019 is right now will be pretty similar to 2017 as long as these conditions will remain as it now.
Significant Market Movers
GREEN: The list is relatively longer today: TTD +13.4%, W 27.9%, Z +26.4%, ROKU +25.2%, OLED +23%, IQ +21.7%, ACIA +17.6%, PAGS +14.3%, AMRN +14%, HUYA +11.7%, EXAS +10.5% .
RED: KHC -27.5%, MDRX -11.2%, COT -11.1%, TDS -10.8%, BEAT dropped 9.4%, NVRO -9.2%, DBX -8.4%, APPN -8.2%, UNIT -7.6%. ..
Price Chart Analysis: Major Indices and Stocks