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Late Week Rally Keeps the Market Afloat
Happy Sunday. We just had the highest monthly close for the S&P 500 and now look to kick off a fresh month of trading.
MARKET RECAP
Late Week Rally Keeps the Market Afloat
SPY Daily Chart
After spending Monday closed for Memorial day, the S&P 500 stayed flat on Tuesday before dropping both Wednesday and Thursday. We closed just below the 21 ema on Thursday which triggered a big sell off Friday morning. Just as it looked like we were going to close the month entering a period of weakness, we had a huge jump upwards in the last hour of the trading day to close above the 8 ema.
Despite an up and down month, the S&P 500 just closed at all all time monthly high and we are still barely hanging onto short term technicals.
The major economic data we saw this week that influenced the market was the second estimate of the Q1 GDP number, which showed the economy grew at an annualized pace of 1.3%. This was less than the first estimate of 1.6%.
The Personal Consumption Expenditures (PCE) index, which is the Feds preferred inflation gauge, rose 2.8% Year-over-Year in April which was in line with estimates.
TRENDWATCH
MSFT Closes Below the 50 Moving Average
MSFT Daily Chart
Microsoft broke out of a short upward trend this week and closed just below the 50 ma on Friday. I am going to keep my eye on Microsoft this week and how it diverges from the 50 ma.
Last Weeks Trend: Apple
AAPL Daily Chart
Last week I pointed out AAPL as my trend watch to see if it could continue its recent move upwards. The companies stock had another solid week and its chart looks to be approaching a golden cross here in a few weeks. I will continue to keep my eye on this.
In the News
💻 Nvidia jumps up again on Tuesday on the news that Elon Musk’s AI startup, xAI, is in the process of building a supercomputer powered by Nvidia chips.
✈️ American Airlines falls after cutting guidance.
📉 Salesforce plummets on weak guidance.
🏪 Costco beats earnings estimates.
UPCOMING WEEK
The markets will kick off a new month of trading this week and updates on the labor market will be the big topic this week with the May jobs report being released on Friday.