Dow/ Nasdaq on 7-Week Winning Streaks

If the U.S. and Chinese negotiators can’t come to a new agreement, the U.S. is expected to raise import taxes from 10% to 25% for $200 billion in Chinese goods. Despite the concerns, the Dow and Nasdaq were able to extended their winning streak to 7-straight weeks.

The Nasdaq edged up 0.1% following the late day run to 7,299. Lower resistance from earlier this month at 7,300-7,350 held with a move above the latter getting 7,400-7,450 and the 200-day moving average back in play.

The Russell 2000 climbed 0.1% despite falling below 1,500 but a level that held for the 2nd-straight session. Prior resistance at 1,510-1,520 remains in focus with continued closes above 1,525 signaling a return to higher highs.

For the week, Tech was up 0.5% while the small-caps rose 0.3%.

The S&P 500 also added 0.1% after rebounding 27 points off the intraday low to reach a late session high of 2,708. Resistance remains at 2,725-2,750 and the 200-day moving average with a move above the latter signaling additional momentum.

The Dow was unable to snap a 2-session slide after testing and intraday low of 24,883. Fresh and upper support at 25,000-24,800 and the 200-day moving average held for the 2nd-straight session.

The blue-chips were higher by 0.2% for the week while the S&P 500 nudged up 0.1%.

Communication Services and Technology showed the most sector strength on Friday after rising 0.7% and 0.6%, respectively. Financials and Energy led sector weakness after sliding 0.5%.

For the week, Technology and Industrials advanced 2% and 1.7% while Communication Services sank 1.5%. 2.2%. Materials and Technology stumbled 1.4%.

 

  I hope this helps you prepare for the trading day. Make it a great one!

   Todd Mitchell