As the bull market continues on, “good” news is “good” news and “bad” news is “good” news.
This scenario played out once again on Friday, as the Street reacted to the unexpectedly weak jobs data for August.
Although the S&P 500 index did appear that it was going to break down as sellers applied pressure off the open, the “buy the dip” crowd came to the rescue. The index was able to make a new all-time high (4549.50) off the jobs number, but it was unable to post its third new all-time closing high of the week.
While the index has not provided investors with a formidable resistance level to lean on, as the highs were scattered for the week from 4534.50 (Monday) to 4549.50 (Friday), with support now being well-defined.
During the last four sessions of the week, all the lows for the index were in just under a seven-handle range. Tuesday’s low (4512.50) established the lower boundary and Friday’s low (4519.25), which matched Wednesday’s low, set the upper boundary. Thursday’s low (4516) day was right in the middle. Therefore, the bulls have a clear area to defend in the upcoming week.
In Friday’s seesaw session, the index slipped less than one handle to close at 4534.50.
Once again, the index’s top component was the biggest gainer. Apple Inc. (NASDAQ: APPL) was unable to make a new all-time high but did manage to make a new all-time closing high for the third time this week, gaining $0.65 or 0.30% to close at $154.30, compared to the index which was flat.
For the second day in a row, Berkshire Hathaway Class “B” shares (NYSE: BRK.B) was the biggest loser. The issue bucked the index almost the entire week, trading lower in four of five sessions, with the one outlier being a factional gain. On Friday, shares skidded $3.16 or 1.10% to close just off its low for the week ($281.71) at $281.89.
Seasonal Trading Adage You May Not Have Heard Of
With the Jewish holidays commencing on Tuesday and not ending until next Thursday, here is an article about a trading adage followed by some.