Bulls Showing Continued Momentum

U.S. markets showed overall strength for the 3rd-straight session despite mixed economic news as trade rhetoric showed signs of improving. Reports that U.S. Treasury Secretary Steve Mnuchin will meet with his Chinese counterpart at the G20 gathering late this month helped market sentiment while offsetting a surprisingly weak jobs number.

The S&P 500 rose 0.8% following the late day push to 2,827. Prior and lower resistance at 2,825-2,850 was cleared and held with a move above 2,875 and the 50-day moving average signaling additional momentum.

The Dow also climbed 0.8% after testing a late day peak of 25,544. Fresh and lower resistance at 25,500-25,750 was cleared and held on the close back above the 200-day moving average.

The Nasdaq added 0.6% following the opening pop to 7,589. Prior and lower resistance at 7,550-7,600 was cleared and held with a move above the latter signaling additional strength towards 7,650-7,700.

The Russell 2000 slipped 0.1% despite tapping a morning high of 1,514. Near-term and lower resistance at 1,515-1,525 was challenged but held with continued closes above 1,550 and the 200/50-day moving averages being a more bullish development.

Real Estate and Utilities led sector strength after surging 2.3% and 2.1%, respectively, while Technology and Consumer Staples rose 1.3% and 1.1%.

Energy was the only sector laggard after giving back 1.1%.

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

   Todd Mitchell