Bulls Regain Slight Momentum Ahead of Trade Talks

U.S. markets closed in positive territory on Thursday following reports China has offered unprecedented proposals to ease U.S. concerns over forced technology transfers.

Additionally, Director of the National Economic Council, Larry Kudlow, said some tariffs could be potentially dropped as part of China trade negotiations and China considering some concessions on IP and cloud computing.

The Russell 2000 showed the most strength after rallying 0.9% while tapping a high of 1,536. Prior and lower resistance at 1,535-1,550 was cleared and held on the close back above the 50-day moving average.

The Dow rose 0.4% after testing a morning high of 25,743. Near-tern and lower resistance at 25,750-26,000 held with continued closes above the latter signaling additional strength towards 26,250-26,500.

The S&P 500 also added 0.4% following the intraday run to 2,819. Current and lower resistance at 2,825-2,850 was challenged but held with a move above the latter being a more bullish signal.

The Nasdaq was higher by 0.3% after reaching an intraday peak of 7,689. Near-term and lower resistance at 7,650-7,700 was cleared and held with a move above the latter signaling additional strength towards 7,750-7,800.

Materials and Financials were sector leaders after rising 1% and 0.9%, respectively. Real Estate and Industrials were up 0.8% and 0.7%.

Utilities and Communication Services were the only sector laggards with declines of 1.2% and 0.2%, respectively.

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

   Todd Mitchell