Monday began on a losing note as nervousness ahead of the upcoming trade negotiations between the US and China loomed heavy. SPY opened in the low 271’s and inched its way downward throughout the day. Even strong gains from the energy, industrial and banking sectors were not enough to prop SPY up from its downward tumble.
Investors were singing a different tune on Tuesday. After a steep run upward in the pre-market trading, SPY continued to climb on optimism as President Trump announced that there may be flexibility on the March 2nd deadline for the conclusion of trade negotiations with China. News that a deal had been struck to avoid another lengthy government shutdown communicate signs of stability and also helped SPY maintain its upward momentum.
Wednesday presented a different side of trading altogether. While there was much optimism among investors over the outcome of the trade negotiations with China, traders took a break – and some profits from SPY near lunch and at then end of the trading day. SPY closed slightly lower just below 275.
On Thursday morning, reported performance of the retail sector sent SPY toward a sharp decline just before the opening bell. Traders saw an opportunity to buy, which caused SPY to climb and nearly close the gap on its losses before profit taking at the end of the day.
Gains in the pre-market trading dominated SPY’s performance on Friday. It was generally a flat, range-bound day ahead of the long weekend. SPY closed off the week having added about $6.