Courtesy of John Nyaradi.
The S&P 500 will likely rise on Friday to finish off a “relief” week
The S&P 500 (NYSEARCA:SPY) will likely rise on Friday, finishing off a volatile and crazy week of political crisis, financial crisis, and a new S&P 500 (NYSEARCA:SPY) record. The Dow Jones Industrial Average (NYSEARCA:DIA) lost .01% yesterday and the NASDAQ 100 (NASDAQ:QQQ) added .62% yesterday, likely on excellent Google (NASDAQ:GOOG) earnings.
I was wrong for the fourth day in a row yesterday and hopefully I will be right today. Investors still seem to be breathing huge sighs of relief and hope and I expect this trend to continue into the weekend. With the debt ceiling raised and the government re-opened, it will likely take a few days for investors and markets to consolidate themselves before we get a new stock market picture. So for now, I am predicting that the S&P 500 (NYSEARCA:SPY) will rise again for Friday to finish out the week.
From a technical perspective, the S&P 500 (NYSEARCA:SPY) remains extremely bullish, with a near overbought RSI of 63.36 and a robust 4.029 MACD Indicator. Yesterday was also a new record for the S&P 500 (NYSEARCA:SPY), so the bulls will likely be on a tear for a while to play out the charge. In any case, momentum appears to be on our side, so we might as well run with it again:
chart courtesy of stockcharts.com
International markets are a flat and mixed bag, with the Nikkei in positive territory and the Hang Seng in negative territory at the time of this writing. European markets finished on the negative side on Thursday, with the FTSE finishing .07% into the green and the DAX losing .38% and the CAC losing .10%.
US Futures markets are currently trading 3-4 tenths into the green at the time of this writing, suggesting further positive investor sentiment.
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