Monday began a tumultuous week of big news and bigger moves. Being one of the tamer days, SPY rose on Monday as a result of modest gains from the banking and retail sectors, as well as renewed optimism in the US-China trade negotiations.
On Tuesday, SPY struggled to find direction early on, staying mostly within a tight 60-cent range until lunch time. An eventual breakout to the upside was short lived and SPY continued downward for much of the afternoon. Investors’ optimism was tempered ahead of the next day’s Federal Reserve announcement on interest rate policy. SPY closed about one dollar lower than its open.
Some trepidation on Wednesday morning over the upcoming Federal Reserve announcement on monetary policy had traders hitting the sell button. SPY dropped initially and found support at the S1 pivot level. Once Fed Chairman Powell took the spotlight and announced that interest rates would remain unchanged, SPY shot upward for a quick $2 gain before coming back down and ending the day slightly lower.
Thursday’s climb was quite exciting! Gains in the tech sector, especially amid Apple’s upgrade to ‘Buy’ status by Needham & Co., propelled SPY to a steady climb through the day. After hitting a high of 285.18, a level not seen since October 10, SPY stabilized just under the R2 pivot.
Finally, SPY opened strong on Friday, climbing in the early minutes of the trading day. The announcement that a portion of the bond yield curve had inverted caused investors to hit the sell button. SPY tumbled downward before finding support and leveling off near 280. In the end, SPY saw highs not seen in many months as well sharp declines under the 280’s.
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