All of a sudden the investment world is not fearing a major recession. The price action in the S&P 500 index futures hinted that during Jerome Powell’s testimony on Capitol Hill on the economy earlier in the week the “buy the dip” mentality was resurfacing, and in Friday’s session the “buy the rip” mentality was rampant.
The bulls got off to an early start at 6:00pm EST open on Thursday night and had the index firmly in the green by the opening of the regular session. The rally continued in a big way off the opening print of the regular session as the index did not even blink at the premarket high.
The relentless move higher was accelerated when the UM Consumer Sentiment survey at 10:00 AM EST was benign and the bull stampede had another leg higher. Just as the index sliced easily through the mid-to-upper 3800 handle last week, it went right back up just as quickly.
By gaining 116.50 handles to close at 3916.25, the index was able to get back above its close two weeks ago (3900.50). The following Monday, the index gapped down and went on to make a new low for the move at 3639 last Friday.
For the week, the index added 240.50 handles or 6.4 percent
MetaPlatforms rebounded from its lowest level in over two years and was the biggest gainer of the top components of the index. For the session, the issue added $11.41 or 7.2 percent to close at $170.18.
That was over double the cash index’s gain of 3.06 percent.
The only loser and therefore the biggest of the top components was UnitedHealth Group Inc. (NYSE: UNH). For the session, the issue sank $4.17 or 0.83 percent to close at $495.64.