After a time of large moves, SPY generally remained steady throughout the week, usually trading within a few dollars’ range.
Monday began with positive news about the outcome of the Mueller Report and optimism of continuing negotiations with China. However, losses in the tech sector as well concern over continued global economic growth tempered the bulls. SPY bounced between levels of support and resistance centered around its open and closed just a few cents higher than its open.
Optimism ruled as the markets opened on Tuesday morning. Gains in the banking and tech sectors helped drive SPY higher initially. As news that a key consumer confidence report fell short of expectations, that optimism was dampened and SPY tumbled from its gains. A slight recovery near the end of the day meant the SPY closed slightly higher for the second day in a row.
Wednesday’s outlook seemed bright in the early part of the day. Some gains were made shortly after the opening bell. As we entered the second hour of trading, losses in the healthcare and tech sectors drove SPY downward into the 278’s before recovering and closing the day a little more than a dollar lower. Trepidation ahead of the US-China trade negotiations scheduled to begin the next day in Beijing also played a role.
SPY began on a rocky footing on Thursday, sticking close to its opening price in the early minutes of trading. A quick break upward into the 281s was followed by a quick downturn into the 279s. SPY recovered and ended the day slightly higher.
On Friday, SPY closed out a turbulent first quarter with gains. For the day, optimism as the US and China made progress toward a new trade deal and gains in the industrial and airline sectors helped keep SPY afloat through the day and close higher.