Note: Our nightly “S&P 500 Outlook, Forecast, and Trading plan for Monday, 08/27” will be posted around 8:30am EDT, Monday.

THE GIST (“THE WHAT”)

The S&P 500 Index registered a record high once again, buoyed by strong earnings by Tech stocks and a relief rally in metal prices that edged up Materials stocks. Breaking through the strong resistance of January 26, 2018 highs amid the escalating trade and geopolitical tensions, the index ended yet another choppy week up, albeit with a modest 0.86% gain.
Opening on a positive note, the index gained momentum after Federal Reserve’s Chairman Jerome Powell reaffirmed the central bank’s gradually tightening monetary policy in a way that many interpreted as “dovish”. Registering the day’s high at 2876.16 (under half a point above the level indicated by our intraday models to go long! Click here to read the full text ), the index held on to the day’s gains, trading in a tight range and closing the session at 2874.69 (again, less than half a point away from the upper bound of a bullish consolidation range indicated by our models!), up 17.71 points and gaining 0.62% over previous day’s close. Ten out of the eleven primary sectors closed the session higher.

THE DETAILS (The “How & Why”):

Materials sector led the index higher, gaining 1.22% on the back of a relief rally in commodities and metal prices. The sector was also up 1.17% on a weekly basis, recovering from a slump mid-week on concerns of intensifying trade tensions between the U.S. and China. Freeport-McMoRan Inc. rose 2.05%, erasing some of its recent losses. 
Autodesk Inc. rose to record highs, soaring 15.33% and lifting the broader Technology sector higher by 1.10% after the design software company reported solid earnings that beat estimates. Advanced Micro Devices was also among the top gainers of the session, extending gains for the sixth straight session by 7.58%.
Energy sector closed the session higher by 0.80% as oil prices edged higher in its best week since June, 2018. The sector was the best performer this week, up 2.64% on tightening supply concerns and recovering from a sharp loss last week.
Treasury yields fell after the Federal Reserve Chairman Jerome Powell reaffirmed the central bank’s gradual interest rate hike policy, citing strength in the economy and strong corporate earnings, but his toNE was interpreted by the markets as relatively dovish. Falling yields benefitted rate-sensitive Real Estate, 
Telecommunications and Utilities sectors by 0.64%, 0.64% and 0.44% respectively. The broader Financials sector also gained a modest 0.30% in today’s broad-based rally.
While the broader Consumer Discretionary sector closed the session higher by 0.59%, several retail companies were the worst performers in today’s session. Foot Locker Inc. led the decliners with a sharp 9.17% loss on disappointing quarterly earnings. Gap Inc. and Macy’s Inc. also shed 8.60% and 4.25% respectively to be among the worst performers within the sector.
Health Care and Industrials were the other notable gainers, up 0.45% and 0.42%. On the other hand, Consumer Staples was the only sector limiting the day’s gains, losing a slight 0.17% led by 3.44% decline in Kroger Co. Tobacco giants Philip
Morris International Inc. and Altria Group Inc. fell 3.19% and 1.74% respectively on stock downgrades. With a weekly loss of 1.79%, this sector was the worst performer this week.