Market Update Into 8/9: Friday Books Record Highs After Employment Numbers Beat Expectations
More than a cat was let out of the bag on Friday after better-than-expected employment numbers sent major indices to new record highs, as stocks booked strong weekly gains across various sectors. The Dow and S&P closed at new all-time highs, signaling positive momentum into the close of Q3. Main Street is beginning to look more attractive to investors which might send them looking toward more growth stocks that align with the expectations of a growing economy. However, some analysts are warning that this might cause the Fed to trim back some of the supportive measures which have been in place to stabilize the economy due to the COVID-19 pandemic. Statements from the Fed at their last meeting establishing a late 2022 deadline for the first interest rate increase might come sooner than later with sustained economic growth into the next quarter.
In this blog post, make sure to check out the top 3 TrendSpider charts posted this week on social media; as well as the broad market charts into next week!
Don’t forget to tune in for Episode 10 of the “Stock Trading Pit” this Sunday, August 8th at 8 PM (EST) with special guests Scott Redler and VS Options.
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The $SPY closed at $442.52 (+0.50) on Friday. Looking at the daily chart, the price has gained above a stubborn resistance level and now holding well above the volume nodes on the volume shelf anchored from July’s lows. On the weekly chart, price is entering a tight range of an ascending triangle. With Friday’s strong close, expectations are for price to continue within this trend in the next few weeks to come.
The $QQQ ended the session at $368.09 (+0.49%). Looking at the daily chart, price has respected the Anchored VWAP from July’s lows numerous times to gain above the high volume nodes on the volume shelf, closing with a slight pullback on Friday. On the weekly chart, price is holding above the 1.618 fib and testing for ignition or breakdown into next week.