Bulls Show Strength Ahead of Fed Update

U.S. markets were choppy throughout Tuesday’s session after trading on both sides of the ledger as Wall Street awaits Wednesday’s update from the Fed and a possible rate cut. The pullback in oil removed some market uncertainty following reports Saudi output is close to restoring 70% of the 5.7 million barrels per day of production lost following the attacks on their production facilities.

Lost in the shuffle was news that President Trump said his administration has reached an initial trade agreement with Japan and will announce a deal in the coming weeks. The mostly higher finish remains a slightly bullish signal as the major indexes remained within sticking distance of all-time highs.

The Nasdaq gained 0.4% following the late day push to 8,188. Prior and lower resistance at 8,200-8,250 was challenged but held with a close above the latter getting 8,300-8,350 and the all-time high at 8,339 back in play.

The S&P 500 climbed 0.3% after tapping a high of 3,006 ahead of the closing bell. Major resistance at 3,000 was reclaimed with fresh hurdles at 3,025-3,050 and the current all-time high just south of 3,028.

The Dow rose 0.1% while closing on its session peak of 27,110. Near-term resistance at 27,250 easily held with a close above this level and the July all-time high at 27,398 getting 27,500-27,750 in focus.

The Russell 2000 fell 0.4% following the opening pullback to 1,569. Current support at 1,575-1,565 held for the 2nd-straight session with risk towards 1,550-1,540 on a close below the latter.

Real Estate paced sector leaders after jumping 1.4% while Utilities and Materials gained 0.9% and 0.8%, respectively. Energy was the weakest sector after giving back 1.4% while Industrials slipped 0.1% to round out the laggards.