The market was blown around a bit by trade news during the day. News hit that the talks ended with no deal which sent the market lower for a while. Then news started to trickle out that the negotiations would continue next week. That gave stocks a lift late in the day. Breadth was +51%. New highs were 90 and new lows were 46. It is still not clear if the SPY option resistance at 290-1 is going to keep the market in check or not. If SPY gets much above 191.5 there could be some delta hedge buying.
The futures held support at the 20 SMA and bounced. The bounce came on news the trade negotiations would continue next week.
The green count recrossed 50.
It looks like they have piled into calls at 295 and 300. If we get solidly through 291 then 295 would be the next resistance level. It could be significant. That 300 strike is likely to be a brick wall.
So far SPX is holding above the Jan. high and just at the edge of the 290-1 SPY option resistance area. Next week the multitude will be coming back from the beach. I am curious to see what kind of mood they will be in. Will they bring something to worry about or will they be all happy? There are emerging market currencies going haywire, but that took a back seat this week to trade negotiations. I have no idea what will happen in Sept., but I have a feeling it will be interesting one way or the other.
Have a great long weekend.
Bob
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