Bulls Rebound as Volatility Eases

U.S. markets showed strength throughout Tuesday’s session despite weaker-than-expected economic news. The small-caps led the way higher with Financial stocks rebounding following the recent worries over the yield curve.

Volatility eased while closing back below key levels of support and is signaling a possible return of market momentum.

The Russell 2000 rallied 1% following the intraday push to 1,535. Prior and lower resistance at 1,535-1,550 on the close back above the 50-day moving average.

The Nasdaq rose 0.7% after tapping a high of 7,738 to snap a 2-session slide. Lower resistance at 7,700-7,750 was breached but held with a close above 7,800 being a more bullish signal.

The S&P 500 also advanced 0.7% following the run to 2,829. Near-term resistance at 2,825-2,850 was cleared but held with continued closes above the latter signaling additional momentum.

The Dow rose 0.6% after reaching an intraday peak of 25,796. Lower resistance at 25,750-26,000 held with continued closes above the latter being a more bullish development.

Energy and Financials were sector leaders after jumping 1.4% and 1.2%, respectively. Consumer Staples advanced 0.9% while Industrials, Healthcare and Utilities were higher by 0.7%.

There were no sector laggards.

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

   Todd Mitchell