Global stock rally sends Dow, S&P 500 to record closing highs
GPRO +13% on the day LNKD +13%
U.S. stocks erase steep losses from the early-October swoon as Dow closes month with a 2% gain. A surprise move by Japan to add
more stimulus sparked Friday’s global rally.An exceptionally strong start to the session with some modest follow into late morning trade allowing the Dow to edge above its Sep intraday peak and establish a new all time high (17395). The S&P notched a new session high as well at that time but it stalled slightly below its Sep/all time high at 2019.26 (session high 2018.19). The Nasdaq Comp set a new multi-year high above its Sep peak off the open but drifted sideways the rest of the day. The unexpected boost in the BOJ’s asset purchase program along with a substantial asset allocation shift to equities by pension investment funds in Japan triggered a surge overseas and the gap higher start.
Sector strength was strong and broad based with the top performing sectors on a percentage basis led by: Semi XSD, Social Media
SOCL, Airline, Internet FDN, Solar TAN, Auto CARZ, & Airlines.
In two weeks the S&P has reclaimed all of the steep slide off the Sep high and set a new all time close high.
The surge has led to an extended posture but price patterns and obviously momentum remain favorable. A short term extension target
above the Sep/all time intraday peak (2019.26) is in the 2024 area followed by the 2029/2031 zone.
S&P 500 2,018.05 +23.40 +1.17%
DOW 30 17,390.52 +195.10 +1.13%
NASDAQ 4,630.74 +64.60 +1.41%
Russell 2000 1,173.51 +17.74 +1.53%
So ends October the scariest month of them all and how bout that ending on a high note.