Stocks were up sharply for the week, entering Friday on the back of a four-day rally as strong earnings and economic data outweighed worries over the coronavirus' economic impact.
The S&P 500 was up +3.3% for the week through lunchtime on Friday and was on pace for its best weekly performance since early June. The DOW is up +3.2% for the week issuing a new green weekly Trade Triangle entering into a long-term uptrend, while the NASDAQ led the pack by gaining +4.3%.
The major averages also reached record highs on Thursday, boosted by China's decision to halve tariffs on a slew of U.S. products. The world's second-largest economy announced it would halve tariffs on $75 billion worth of U.S. imports on Thursday.
However, stocks were under pressure amid concerns about the potential economic fallout of China's fast-spreading coronavirus. China's National Health Commission on Friday confirmed 31,131 cases of the deadly pneumonia-like virus in the country, with 636 deaths.
Payrolls increased by 225,000 after an upwardly revised 147,000 gain in December, according to a Labor Department data Friday that topped all estimates of economists. The jobless rate edged up to 3.6%, still near a half-century low, while average hourly earnings climbed 3.1% from a year earlier.
Bitcoin continued its bullish momentum gaining +5.9% on the week, triggering a new green monthly Trade Triangle entering into a long-term uptrend. It looks to be making a run at breaking above the $10K level for the first time since last October.
Not to be outdone, the U.S. Dollar also triggered a new green monthly Trade Triangle indicating that a long position is in order for the dollar.
Gold and crude oil seem to be in lockstep this week, both losing -1.4% on the week. However, they are opposite ends of the Chart Analysis Score with gold maintaining a +80 rating and oil checks in with a -75 rating.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 3,214.68
- Dow (INDEX:DJI): 289,169.53
- NASDAQ (NASDAQ:COMP): 9,088.04
- U.S. Dollar (ICE:DX): 97.35
- Gold (NYMEX:GC.J20): 1,551.10
- Crude Oil (NYMEX:CL.H20): 49.47
- Bitcoin (BITCOIN:BITSTAMPUSD): 8,212.90