DATA POWERS S&P 500, CHINA TRADE TALK HOPES SUPPORTIVE
S&P 500 is currently trading at 2905.67- higher by 0.05% led by technology and financial stocks. The index has been gaining momentum since the last 4 trading sessions. Further back, it has closed in the positive, in 4 out of the past 6 trading sessions. While it has closed about flat on Wednesday.
In a generally supportive development, news out of Beijing indicated that Chinese officials welcomed a U.S. invitation for talks. This has been powering most global markets higher today.
Financial stocks rose 0.52%, the most among the 11 major S&P 500 sectors after the 10-year U.S. Treasury yield broke back above the key technical level of 3% for the first time since the start of August.
Among the top gainers in the S&P 500 Microsoft rose 0.61%, Facebook inched up 0.71%, AMD rose 4.7%, Nvidia gained 2.7%, and L Brands rose by 2.6% at the time of writing. Adobe Systems Inc. rose 3% on Friday after the maker of design and publishing software posted fiscal third-quarter earnings that topped analysts’ forecasts.
Official data released on Friday showed that Industrial Production (MoM) for the month of August released rose by 0.4% above the market expectations of 0.3%. Also in July the Industrial Production rose by 0.4%. Further, the University Of Michigan reported on Friday that its preliminary index of U.S. consumer Sentiment was 100.8 for September -the second highest level since 2004. The markets expected a reading of 96.7 with August’s final reading at 96.2.
On the technical front, the RSI is currently at 65.51% and suggests that the market can move in the upward direction. The current price is above the MA5. The %K has crossed the %D from below to the upside at 38.01% and suggests that markets may move in the upward direction.
So, overall the market setup seems to be positive. Trades can be initiated with tight Stop Loss and Take Profit targets as quick short-term trades.
Trade Suggestion-Limit Buy at 2903. Take Profit at 2914. Stop Loss at 2897.