Markets Bounce Back In Surging Session
2020-06-29 | Simpler Trading Team
Markets responded to Friday’s sharp gap down by swinging back to the upside Monday to kick off the shortened holiday week.
The day opened with strong momentum and continued with all indexes showing positive upswings. The day closed with a final hour rally that spiked the Dow by more than 150 points.
The Dow closed at 25,595.80 points to gain 2.32% (adding 580.25 points on the day). The Nasdaq rallied as well to 9,833.63 points for a .78% uptick while the S&P 500 jumped 1.02% to 3,039.84 points.
Key sector tickers such as Boeing (up 13%) and Apple surged in trading during a session that saw the Fed launch the second phase of its planned corporate bond-buying program.
Stocks rising on the day was in contrast to new data and dire warnings about a continued spike in U.S. Covid-19 cases.
It wasn’t all sunshine across the board for tickers. Big tech giant Facebook is still reeling as more advertisers boycott the platform over questions of hate speech and misinformation.
Overall more tickers were on the rise compared to those on the decline.
Simpler Trading was in the game from the opening bell with traders watching how the market didn’t get spooked on Covid-19 news, even with news of millions of working adults looking for jobs.
The rest of the week will bear out whether the market will maintain its positive sentiment.
Until the market signals otherwise, Simpler continues to lean to the long side. Signals in key housing stocks, retail, and pandemic-boosted stocks will be closely watched.
We Saw: a market determined to move to the upside —
- Mixed bag of positive vs. negative in sector leaders
- Data warnings and dire concerns over Covid-19
- All three major indexes bouncing back after Friday losses
We’re Watching: continued momentum to the long side —
- Key sectors supporting the overall indexes
- Warnings that major airlines face harsh recovery
- Setups: TSLA, FB, GOOGL, pandemic tickers
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