Dow Holds 26,000 Level

U.S. markets showed continued momentum to start the week after Mexico reached a deal to avoid the implementation of tariffs that were set to start on Monday. Meanwhile, President Trump said he believes China will make a deal with the U.S. because they’re going to have to, adding the country is getting absolutely decimated by companies that are leaving China, going to other countries, including our own.

The higher highs continue to push key resistance levels but volatility only eased slightly and remains in neutral territory. Fed speak is in a quiet period until next week’s minutes but talks of a rate cut, or two, continue to help momentum.

The S&P 500 extended its winning streak to 5-straight sessions after adding 0.5% while trading to a high of 2,904. Prior and lower resistance from early May at 2,900-2,925 was cleared but held on the 2nd-straight close above the 50-day moving average.

The Dow was up for the 6th-straight session after gaining 0.3% and testing an intraday high of 26,210. Near-term and lower resistance at 26,000-26,250 was recovered and held on the close back above the 50-day moving average.

The Nasdaq was higher by 1.1% after reaching a late day peak of 7,895 to
extend its winning streak to 5-straight sessions. Resistance from a month ago at 7,850-7,900 and the 50-day moving average was challenged but held.

The Russell 2000 climbed 0.6% following the intraday push to 1,535. Lower and major resistance at 1,525-1,540 was cleared but held with more important hurdles at 1,545-1,560 and the 200/50-day moving averages.

Technology jumped 1% and rallied to lead sector strength while Financials and Consumer Discretionary advanced 0.9%.

Utilities and Real Estate paced sector laggards after falling 0.7% and 0.4%, respectively. Communication Services dipped 0.1% to round out the losers.

 

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

   Todd Mitchell