US Economy Looks ‘Very Good’ in Here, Stocks Break Out on Volume

US Economy Looks ‘Very Good’ in Here, Stocks Break Out on Volume

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

FLASH: S&P 500 marks its Best Quarter since 2009

Friday the US stock market liked what it heard:

  1. The US and China held “constructive” trade talks in Beijing this week, according to Treasury Secretary Steven Mnuchin and the White House. Trade talks will continue next week in Washington with China’s Vice Premier Liu He,
  2. NEC Director Larry Kudlow saying he believes the Fed should cut rates by 50 basis points since there is no inflation and the U.S. economy is fundamentally healthy. Mr. Kudlow’s comments came after Fed Governor Randal Quarles said further rate hikes may be necessary, as he remains optimistic about economic growth.
  3. White House NSA John Bolton said that President Trump is eager for a US trade deal with Britain once it breaks away from the European Union.
  4. Sales of new US homes climbed 4.9% in February, an indication that falling mortgage rates have given a boost to demand from buyers.
  5. The PCE Price Index for January decreased 0.1% while the core PCE Price Index, which excludes food and energy, increased 0.1%. On a year-over-year basis, the PCE Price Index is up 1.4%, down from 1.8% in December, and the core PCE Price Index is up 1.8%, down from 2.0% in December.

The S&P 500 gained 0.7% Friday, marking its best Quarter since Y 2009 amid a risk-on sentiment and continued trade optimism.

The DJIA (+0.8%), the NAS Comp (+0.8%), and the Russell 2000 (+0.3%) extended their quarterly gains to 11.2%, 16.5%, and 14.2%, respectively.

The S&P 500 healthcare (+1.2%), industrials (+1.0%), and information technology (+1.0%) sectors outperformed the broader market.

Conversely, the energy (-0.2%) and real estate (-0.1%) sectors were the lone groups to finish with losses.

Friday, the major US stock market indexes finished at: DJIA +211.22 at 25928.68, NAS Comp +60.16 at 7729.31, S&P 500+18.96 at 2834.40

Volume: Trade on the NYSE came in at 1.1-B/shares exchanged

  • NAS Comp +16.5% YTD
  • Russell 2000 +14.2% YTD
  • S&P 500 +13.1% YTD
  • DJIA+11.2% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish to Very Bullish at the week ending 29 March 2019

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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