Market Update: Fri, Jan 18, 2019 | LPL Financial Research


Daily Insights

Stocks continue to grind higher. Major indexes opened higher today, with the S&P 500 Index already posting gains in three of the four days so far this week. The volatility that has marked the last three months has been nowhere to be found so far in 2019, with the index consolidating gains in a less than 4% range over the last two weeks. We continue to believe that the index may struggle to climb above resistance at these levels in the very short-term, but ultimately expect the bottoming process to play out and for stocks to push back towards all-time highs by the end of the year. On the upside, above 2650 the S&P 500 will have to battle its 200-day moving average (currently at 2741), while on the downside a retest of the Christmas Eve lows near 2350 remains a possibility.

Trade optimism increases.
Stocks rallied yesterday after reports that Treasury Secretary Steve Mnuchin proposed lowering tariffs as an incentive for the Chinese to make a deal when Beijing’s top negotiator comes to Washington at the end of the month for another round of formal talks; however, gains were subsequently pared heading into the close as administration officials downplayed the situation. Still, both sides have publically expressed optimism on the need to find common ground with China’s economy starting to feel the effects of tariffs on exports to the U.S., while the market’s fourth quarter slide has garnered the attention of President Trump. Whether or not the U.S. decides to extend the olive branch, we still view the recent developments as a clear sign that both parties are working in earnest to find a means of easing tensions.


Click Here for our detailed Weekly Economic Calendar


  • Industrial Production (MoM, Dec)
  • University of Michigan Sentiment Index (Preliminary, Dec)



The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. The economic forecasts set forth in this material may not develop as predicted.

All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

All company names noted herein are for educational purposes only and not an indication of trading intent or a solitication of their products or services. LPL Financial doesn’t provide research on individual equities.

All performance referenced is historical and is no guarantee of future results.

This research material has been prepared by LPL Financial LLC.

To the extent you are receiving investment advice from a separately registered independent investment advisor, please note that LPL Financial LLC is not an affiliate of and makes no representation with respect to such entity.

The investment products sold through LPL Financial are not insured deposits and are not FDIC/NCUA insured.  These products are not Bank/Credit Union obligations and are not endorsed, recommended or guaranteed by any Bank/Credit Union or any government agency.  The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principal is possible.

Index data obtained via FactSet


For Public Use – Tracking #1-813448 (Exp. 01/20)