Wall Street Close: Bulls bounce back hard in end of quarter flows


  • S&P 500 unofficially closes up 50.30 points, or 1.52%.
  • Dow Jones unofficially closes up 384.29 points, or 1.41%.
  • NASDAQ unofficially closes up 197.47 points, or 1.81%.

US stocks ended sharply higher on Monday as investors piled back in on what is otherwise expected to be the first monthly decline since March of this year.  

End of month flows and portfolio rebalancing could be what has driven the spike in the benchmarks on Monday, combined with hopes of stimulus talks and possible progress to end the stalemate between the Democrats and Republicans, as telegraphed in this week's weekly forecast.

However, the rally was a lot stronger than anticipated.

Across the pond, there was also a positive air of expectation around the UK-EU trade talks which may have been playing their role on wall Street.

Also, the European Central Banks president Lagarde hinted at more easing if necessary. 

Additionally, regional Fed data continued to point to a resilient manufacturing sector. 

Consequently, all combined, the Dow Jones Industrial Average rose 410.1 points, or 1.51%, to 27,584.06, the S&P 500 added 53.14 points, or 1.61%, to 3,351.6 and the Nasdaq Composite put on 203.96 points, or 1.87%, to 11,117.53

The third quarter also draws to a close on Wednesday. Both the S&P and the Nasdaq have headed for their best two-quarter winning streaks since 2009 and 2000, respectively, despite September's expected loss.

As for data, the Dallas Fed Manufacturing Index increased from 8.0 to 13.6, soundly beating expectations.

''Production, capacity utilisation and new orders all rose, as did employment and prices paid and received. The index is sitting well above its 2019 average, though we’ll have to wait to see where things settle once the catch-up flurry has passed,''

analysts at ANZ Bank explained. 

S&P 500 technical analysis

In the start of the week's analysis, Monday's spike had already been forecasted:

However, the move exceeded expectations and the H&S pattern is nullified. 

The price is meeting resistance a higher resistance this juncture.

SP 500 

Overview
Today last price 3358.25
Today Daily Change 77.50
Today Daily Change % 2.36
Today daily open 3280.75
 
Trends
Daily SMA20 3380.88
Daily SMA50 3356.33
Daily SMA100 3215.21
Daily SMA200 3107
 
Levels
Previous Daily High 3282.25
Previous Daily Low 3217.75
Previous Weekly High 3330.75
Previous Weekly Low 3209.5
Previous Monthly High 3522.75
Previous Monthly Low 3264.25
Daily Fibonacci 38.2% 3257.61
Daily Fibonacci 61.8% 3242.39
Daily Pivot Point S1 3238.25
Daily Pivot Point S2 3195.75
Daily Pivot Point S3 3173.75
Daily Pivot Point R1 3302.75
Daily Pivot Point R2 3324.75
Daily Pivot Point R3 3367.25

 

 

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