The stock market exhibited some softness right out of the gate, but quickly found upside momentum. Gains built up throughout the session, aided by some short-covering activity.
The major indices all closed near their best levels of the day, which had the S&P 500 back above the 4,150 level.
Gains were driven by some positive responses to earnings and other corporate news, along with an emerging hope that the president and congressional leaders are more aligned with debt ceiling negotiations. Still, no deal has been reached and uncertainty remains in play for market participants.
That uncertainty, though, was not enough to offset today's relatively strong showing, which had a pro-cyclical bias.
An uptick in single-family starts and single-family building permits in April, along with the Atlanta Fed's GDP Now model estimate for real GDP growth in the second quarter increasing to 2.9% from 2.6%, helped drive the cyclical trade.
Advancing issues led declining issues by a greater than 3-to-1 margin at the NYSE and a 5-to-2 margin at the Nasdaq. Many stocks came along for the rally, leading nine of the 11 S&P 500 sectors to close with a gain.
Chart: QQQ daily
QQQ looks way stronger compare with SPY on daily chart, as what I marked on my chart, QQQ is already break prior $331.43ish resistance and touched high of $331.71, even it will still be facing $334.42ish level, however, with this level of optimistic, I think it will break out soon. In the short term, $327.04 will provide some support for QQQ.
Chart: SPY daily
SPY opened up high with gap at the market open, I shorted some SPY at the market open and closed out all short positions around 411ish. In the short-term, SPY needs to deal with 415.7ish and 417.6ish resistance. And it's still weaker than Qs.
However, personally, I feel there's still a long way to go, markets are too bullish about this macroeconomy situation and about the future, and clearly we are not there yet!
The major indices all closed near their best levels of the day, which had the S&P 500 back above the 4,150 level.
Gains were driven by some positive responses to earnings and other corporate news, along with an emerging hope that the president and congressional leaders are more aligned with debt ceiling negotiations. Still, no deal has been reached and uncertainty remains in play for market participants.
That uncertainty, though, was not enough to offset today's relatively strong showing, which had a pro-cyclical bias.
An uptick in single-family starts and single-family building permits in April, along with the Atlanta Fed's GDP Now model estimate for real GDP growth in the second quarter increasing to 2.9% from 2.6%, helped drive the cyclical trade.
Advancing issues led declining issues by a greater than 3-to-1 margin at the NYSE and a 5-to-2 margin at the Nasdaq. Many stocks came along for the rally, leading nine of the 11 S&P 500 sectors to close with a gain.
QQQ looks way stronger compare with SPY on daily chart, as what I marked on my chart, QQQ is already break prior $331.43ish resistance and touched high of $331.71, even it will still be facing $334.42ish level, however, with this level of optimistic, I think it will break out soon. In the short term, $327.04 will provide some support for QQQ.
SPY opened up high with gap at the market open, I shorted some SPY at the market open and closed out all short positions around 411ish. In the short-term, SPY needs to deal with 415.7ish and 417.6ish resistance. And it's still weaker than Qs.
However, personally, I feel there's still a long way to go, markets are too bullish about this macroeconomy situation and about the future, and clearly we are not there yet!
