Four Day Rally Comes To An End

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:

Every Success,
Jeremy Lutz
INO.com and MarketClub.com

One thought on “Four Day Rally Comes To An End

  1. So is gold going to fall from 1570,18 to 1551, 80.....?

    and is Nasdaq going to fall next week from 9400,60 to 9088,04 ...?

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