Stocks Recover Slightly from Wednesday’s Break LowerPosted 08/16/2019 8:43AM CT |
Equity markets traded back and forth this week with a big move lower across the board on Wednesday. Friday’s trade started the day positive and continuing the move higher from Thursday’s recovery. U.S./China trade sentiment has switched slightly more positive from the beginning of the week. There is some hopefulness that stocks will end the week strongly with mentions of another round of stimulus from central banks and Trump pressuring the Fed but the Hong Kong protests could add to today’s volatility. Although the outlook is for positive trade today, gains should be limited with resistance in the S&P at 2895.00. A close below 2834.50 would continue the trend lower. The Dow and Nasdaq are also seeing slight gains to end the week but haven’t reversed the current trend yet. Extended gains are needing to see positive headline on U.S./China trade talks while protests in Hong Kong could provide additional negative pressure.