Even with a strong gap-open to start the day, the S&P 500 managed to finish higher than it opened for the eleventh straight day. That is remarkable momentum especially when you consider that the indices have been overbought for a while and there is substantial overhead resistance at these levels.
There are many theories for why investors who couldn't wait to dump stocks a month ago now can't seem to buy them fast enough. The main driving force right now is that they don't want to miss out if there is some good news on China trade.
We had a brief taste of how fast the market can move this past Thursday on a questionable headline from the Wall Street Journal. If that news proved to be true, there is no question we are going to see more upside no matter how extended stocks may already be.
It is fascinating how the mood of the market can change. The idea that the lows of December could be retested seems far-fetched now but it didn't seem at all unreasonable a couple of weeks ago.
What was most notable about the action Friday was that disappointing results from Netflix (NFLX) and a warning from Tesla (TSLA) had no impact. Granted these are not bellwether stocks but it should raise some concern that some or the reports next week may not be blowouts.
Next week we have IBM (IBM) reporting on Tuesday night, Intel (INTC) on Thursday night and quite a few other technology names. So far the main reports have been from financials so we will see a very different tone as the technology reports roll in.
Until this market rests or pulls back the only way you put money to work is to chase extended entry points. That can be successful for a while but the risk is increasing fast.
Don't forget the market is closed on Monday. Enjoy the long weekend. I'll see you on Tuesday.