U.S. markets surged to fresh all-time and closing highs on Friday following optimistic comments from White House economic adviser Larry Kudlow. He said trade talks with China are coming down to the short strokes and that the U.S. is in communication with China every single day right now.
The latest trade headlines continue to push the major indexes into overbought territory with new money coming in off the sidelines. However, the action in the VIX is signaling continued near-term market strength before a possible pause or pullback.
The Dow jumped 0.8% while closing on a fresh all-time high of 28,004. Key resistance at 28,000 was cleared and held with continued closes above this level leading to a possible run towards 28,250-28,500.
The S&P 500 also soared 0.8% after closing at a record high of 3,120 while holding the 3,100 level throughout the session. Fresh and lower resistance at 3,125-3,150 held with strength towards 3,175-3,200 on a move above the latter.
The Nasdaq was higher by 0.7% following the late day run to 8,540 and closing peak. Fresh and lower resistance at 8,550-8,600 was challenged but held with un charted territory towards 8,650-8,700 on a move above the latter.
The Russell 2000 gained 0.5% after testing an intraday high of 1,598. Near-term and lower resistance at 1,600-1,615 was challenged but held with a close above the latter and the May 52-week high at 1,618 getting 1,625-1,640 in focus.
For the week, the Dow rose 1.2% and the S&P 500 was up 0.9%. The Nasdaq rose 0.8% while the Russell 2000 was down 0.1%.
Communication Services, Technology and Energy were the strongest sectors on Friday after rising 0.8%. Materials dipped 0.1% and was the only sector in the red.
For the week, the best performing sectors were Healthcare (2.5%), Real Estate (2%), Utilities (1.8%) and Technology (1.3%). Energy (-1%), and Financials (-0.3%) were the only sectors that closed lower.