Huge turnaround in the stocks. Major indices close with decent gains.
Gains of 1% (give or take) for the major indices.
The major US stock indices opened way down after China retaliated with their own tariffs. The S&P opened well below its 200 day MA at 2591.
Later the new US economic advisor Larry Kudlow had some calming words about the tariffs. The market gave him the benefit of the doubt, and things started to turn around.
Technically, the S&P traded above and below that key 200 day MA , and then started to extend higher. Sellers covered.
The numbers today:
- The S&P is ending up +30.24 points or +1.16% at 2644.69. That is up from 2573.61 low (down -41 points at the low). The high extended to 2649.
- The Nasdaq was down -131 points at the lows and is ending up +100.828. The index gained 1.45% and closed at 7042.109. The low extended to 6811.76. The high reached 7059.29
- The Dow had a 785 point turnaround from the low to the high. It closed up 230.94 points or +0.96% after being down -511 points at the lows. The low reached 23523, while the high extended to 24308 (785 point range)
Now that the price of the S&P is comfortably above its 200 day MA, does it make a run toward the 100 day MA later this week?
The 100 day MA is at 2694.07. That is 50 points away (or about a 1.8% gain from here). It would take a good run, but today, the range was about 76 points. So anything is possible.
PS a move back below the 200 day MA is also possible in these volatile markets. The 200 day MA will be also be about 50 points away from the closing level tomorrow.
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