May 23rd 2014 – S&P 500 Hits New Record of 1,900.5

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Market View:

An end to the week on a high note.  I have been calling for a new All-time high close and here it is.  Now what?  Well. After 3 days of strong upwards movement, a new Alt-time high close in the S&P came faster than I expected.  Therefore, I expect to see some weakness on Tuesday as we test this new no-man’s land.  It is still not an intraday high as it went a point higher before, but it’s the highest close.

It’s very hard to judge what happens next when it reaches white space, so my only conclusion is that we may go a little higher, but there is bound to be some selling early next week.  Just hopefully not too much to shake me out of my positions.  The larger trend is still clearly up.

It’s Memorial Day in the US, so no need to check your positions on Monday! Market is closed.

Market News:

U.S. stocks gained for a third day on Friday, lifting the S&P 500 to a record finish, as Hewlett-Packard surged and after a better-than-expected report on the sale of new homes in April.

Home builders including Lennar, D.R. Horton and Pulte Group advanced after the Commerce Department reported sales of new homes rose 6.4 percent in April, halting two months of declines.

At an economic summit in St. Petersburg, Russian President Vladimir Putin argued that his nation was not at fault in its current stand-off with Ukraine.  Saying about Obama – “Who is he to judge”…Interesting!  Putin also warned of a “dangerous civil war” in Ukraine as fresh violence erupted ahead of this weekend’s presidential election.

In the broad market, rising 0.7 percent from the week-ago close, the Dow Jones Industrial Average gained 63.19 points, or 0.4 percent, to 16,606.27, with Nike front-running gains that extended to 20 of its 30 components.

Advancing to a session high of 1,901.26, above its record close hit on May 13 and less than a point from its intraday record, the S&P 500 ended up 8.04 points, or 0.4 percent, at 1,900.53. Technology led sector gains and utilities led sector losses. The S&P rose 1.2 percent for the week, its first weekly gain in three.

After a brief and early dip, the Nasdaq rose 31.47 points, or 0.8 percent, to 4,185.81, leaving the technology-laden index 2.3 percent higher for the week.

Volume was slim Friday with many traders breaking early ahead of the three-day holiday weekend, with Wall Street closed on Monday for Memorial Day.

Still, European markets mostly finished in positive territory.

News Sources:  CNBC and CNN Money

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