The Trump Market, DJIA Marks Another Record High

The Trump Market, DJIA Marks Another Record High

The Trump Market, DJIA Marks Another Record High

$DIA, $SPY, $QQQ, $RUTX, $VXX

Friday, the Industrials led DJIA to a new closing high Friday ahead of Monday’s major sector reshuffle, capping a week in which investors shrugged off trade dispute concerns.

Declines in the FAANGs dragged on equity benchmarks, helping erase the session’s gains on a day when Quarterly re-balancing spurred volatile Quad-witching  trading.

The big rearrangement of the GICS takes effect on Monday, 24 September, with the creation of the communication services group. The new industry category will include 3 of the 4 FAANGs, Facebook, Alphabet and Netflix and could force investors who track indexes based on the classification to reshuffle their money.

The S&P 500 Index was flat to Unchanged Friday ending the week up after marking a record high Thursday.

Quad-witching is when futures and options on indexes and individual stocks expire, and the largest revision to the Global Industry Classification Standard since Y 1999 may be behind the slide and the higher-than-average volumes.

Earlier, the bullish mood that characterized most of the week buoyed global equity markets.

Stocks rallied in Europe and Asia, and the MSCI All-Country World Index was poised for a 7-month high.

US Treasury yields held above 3%, USD and commodities gained on the day.

The Commodity Index climbed to its highest level in more than a month, fueled by gains in Crude Oil and Copper.

The EUR fell from a 3-month high after data showed euro-area expansion edged lower in September.  In Japan, news that the BOJ is trimming purchases of debt maturing in more than 25 years helped boost 20-year and 30-year government bond yields.

Raw materials, stocks and emerging-market assets are all rallying as investors bet the global economic expansion is intact despite the latest data from Europe and the escalating trade war.

Emerging-market stocks and currencies extended a rally. Indian stocks bucked the developing-nation trend, as a plunge in banks set off an exodus from financial shares.

Friday, the major US stock market indexes finished at: DJIA +86.52 at 26743.50, NAS Comp -41.28 at 7986.95, S&P 500-1.08 at 2929.67

Volume: Trade on the NYSE came in at 2.66-B/shares exchanged

  • NAS Comp +15.7% YTD
  • Russell 2000 +11.5% YTD
  • S&P 500 +9.6% YTD
  • DJIA +8.2% YTD

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ended 21 September

Date Symbol Price Technical Analysis Support Resistance
21 September 2018 QQQ 184.75 Bullish (0.29) 182.92 186.74
21 September 2018 DIA 267.43 Very Bullish (0.60) 264.56  None
21 September 2018 SPY 292.96 Bullish (0.45) 291.70 298.98

Have a terrific weekend

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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