The second quarter of 2019 began with US markets performing strongly. SPY opened on Monday at 284.71 and climbed at a steady pace through the day on gains in the tech and financial sectors. A little more than a dollar was added by day’s end.
Tuesday was characterized by range-bound trading. SPY spent most of the day within a narrow, 50-cent range between 285.50 and 286.00. Nervousness among investors as SPY edged up upon a high level seemed to clash with the optimism of future global economic stability, particularly with the US and China continuing trade negotiations. These factors contributed to the day’s flatness.
Wednesday’s lackluster results of non-farm employment change and services PMI resulted in an initial downturn soon after the opening bell. SPY found support, recovered and returned modest gains through the morning. As we moved into the afternoon, however, losses in the energy, consumer goods and healthcare sectors drove SPY downward, finishing the day in the mid-286’s.
Thursday proved to be another day of relatively narrow trading. SPY fluctuated throughout the day, climbing on gains from the banking sector and falling on losses in tech and health, again keeping close to its opening price and closing the day slightly higher.
Strong reported jobs data and little news to thwart a climb set an optimistic tone for US markets on Friday. SPY climbed shortly after it opened and found excellent support at the R1 pivot at 288.22 before finishing off the week higher in the mid-288’s. All in all, a strong performance for the first week of the second quarter.