Bulls Continue to Climb Wall of Worry

​​U.S. markets showed continued momentum following the 4th-straight session of higher highs. News that U.S. and China trade talks resumed for a 3rd-straight day that were unscheduled, but have now ended, are hinting real progress is being made.

The strength came despite fresh concerns over the U.S. debt ceiling and possible credit downgrade and ahead of the FOMC minutes. The reaction afterwards was well received as the major indexes held their gains into the closing bell

The Nasdaq showed the most strength after rising 0.9% and trading to a high of 6,985. Fresh and lower resistance at 6,950-7,000 was cleared and held with a move above the latter and the 50-day moving average being a continuing bullish signal.

The Russell 2000 also rallied nearly 0.9% after closing less than 4 points off its session high of 1,442. New and lower resistance at 1,435-1,450 was split and held with a move above the latter and the 50-day moving average also leading to higher highs.

The S&P 500 added 0.4% following the intraday run to 2,595. Upper resistance at 2,575-2,600 was challenged but held with more important hurdles at 2,625-2,650 and the 50-day moving average.

The Dow was also up 0.4% after reaching a peak of 23,985 ahead of the Fed news. Upper resistance at 23,800-24,000 was nearly cleared with a close above this level keeping 24,250-24,500 and the 50-day moving average in play.

Energy and Technology led sector strength after jumping 1.4% and 1%, respectively. Industrials and Consumer Discretionary advanced 0.5% and 0.3%.

Consumer Staples paced sector laggards after giving back 1.1%. Utilities were down 0.8% and Real Estate declined 0.5%.

Akamai (AKAMWealth Strength IndexAAPL is Extremely Up and trending Up) upgraded to Overweight from Sector Weight at KeyBanc
Foot Locker (FL) upgraded to Outperform from Neutral at Baird
Wendy’s (WEN) upgraded to Outperform from Perform at Oppenheimer

Booking Holdings (BKNGWealth Strength IndexAAPL is Extremely Up and trending Up) downgraded to Equal Weight from Overweight at Morgan Stanley
Oracle (ORCL) downgraded to Equal Weight from Overweight at Barclays
United Continental (UAL) downgraded to Underperform from In-Line at Imperial Capital

Thursday Before the Open (EST):
​​Emmis Communications (EMMS), FuelCell Energy (FCEL)

Thursday After the Close (EST): Aehr Test Systems (AEHR), Synnex (SNX)

Thursday’s Economic Reports (EST):
Jobless Claims – 8:30am
Wholesale Trade – 10:00am


Gold closed at $1,292.00 an ounce, up $6.10
Silver settled at $15.73 an ounce, up $0.02
Copper finished at $2.66 a pound, up $0.01
Crude Oil is at $52.20 a barrel, up $2.51
Bitcoin Investment Trust (GBTC) ended at $4.71,
down $0.25

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

Todd Mitchell