Week in Review: Stocks End Higher As Other Markets Crumble… 05/05/2017

Facebook
Twitter
LinkedIn

Stocks ended mixed to mostly higher last week as other markets crumbled and investors digested a plethora of earnings.  A slew of currencies and commodities fell hard but sellers remained at bay on Wall Street. To be clear, we are still in a very strong bull market and until we see any major selling show up, the stock market has earned the bullish benefit of the doubt. The next important near-term level of support to watch is the 50-day moving average line for the major indices.

On a relative basis, the Nasdaq and Nasdaq 100 continue to out-perform the other popular indices. After the 50 DMA line, the next important levels of support to watch are: Russel 2000: 1335, then 1308, Dow Industrials: 20,379, then 20.1k, S&P 500: 2322.25, then 2300, Nasdaq Composite: 5769.39, then 5669. Until those levels are breached on a closing basis, the bulls remain in control.

 

A Closer Look at What Happened Last Week…

Mon-Wed Action:

The Nasdaq jumped to a fresh record high on Monday. Bank shares also rallied after President Trump talked about breaking up the big banks. The market also digested several economic data points. The ISM manufacturing index slid to 54.8 in April from 57.2 and missed estimates. Construction spending slid in March from a record high. The Commerce Department said consumer spending remained flat in March, while personal income rose less than expected. The market edged higher on Tuesday as investors awaited a slew of

The market edged higher on Tuesday as investors awaited a slew of high-profile earnings to be released and the Fed began its two-day meeting. Apple Inc reported after the bell and initially fell but turned higher by the end of the week.

Stocks were quiet on Wednesday as the Fed ended its two-day meeting and left rates unchanged. The Fed said Q1 2017 GDP weakness was transitory and expects GDP to pick up by the end of the year.

Thur & Fri Action:

Stocks were quiet on Thursday even as crude oil plunged 5% and a slew of other commodities fell as well. Stocks are very strong as they simply refuse to budge even as other markets crumbled. On average, earnings remain positive as investors digested the latest round of earnings from Tesla, Facebook, and Regeneron, just to name a few. 

Before Friday’s open, the Labor Department said U.S. employers added 211,000 jobs in April and the unemployment rate fell to 4.4%. Economists polled by Reuters expected jobs growth of 185,000 and for the unemployment rate to hit 4.5 percent. Despite the strong beat, stocks were relatively quiet. 

 

Market Outlook: Stocks Are Strong

The market is very strong. As always, keep your losses small and never argue with the tape.

 

 

Facebook
Twitter
LinkedIn

Here are more articles you may like

Claim Your Free Guide Today

Give us your email and we will give you the tools to change your life. 

FREE 7 DAY EMAIL COURSE

Learn about Early Entry Points & much more...

© ChartYourTrade | Contact us: website@chartyourtrade.com

Disclaimer: All communication from ChartYourTrade is general in nature and for educational and general informational purposes only. Under no circumstance should it be considered personalized investment advice. All our work is general in nature and not specific to any one person. All the information on this site and/or that originates from us, or any of our partners or affiliates, is for educational and informational purposes only and is NOT a recommendation to buy or sell anything. To avoid any conflicts of interest, we do not have a working relationship with any of the companies mentioned in our work. Furthermore, we may have a long, short, or no position in any, or all, of the names that appear in our work and they may change at any time without notice. Investing and trading in capital markets or using margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you as well as for you. Before you decide to invest or trade in capital markets you should carefully consider your investment objectives, level of experience, and risk appetite, among other factors. The possibility exists that you could sustain a loss of some, all, or more of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with capital markets, investing/trading, and seek specific investment advice from an independent financial advisor and other professionals. Remember all the information we provide is for educational and general informational purposes only and is subject to change without notice.

Charts and Data are courtesy of MarketSmith Incorporated. Join MarketSmith here.

Terms of Service