Nasdaq Clears 50-Day Moving Average

U.S. markets rallied on Tuesday following fresh trade optimism with China and ahead of the FOMC’s latest decision concerning interest rates on Wednesday. President Trump tweeted that he had a very good conversation with President Xi of China with an extended meeting planned for next week at the G-20 in Japan.

The higher highs cleared near-term and major resistance levels with volatility falling below major support levels. The action looks bullish for a continued rally towards all-time highs, depending on Fed speak or what happens with interest rates, with any disappointing news setting the stage for a nasty selloff.

The Nasdaq soared 1.4% following the spike to 8,005 shortly after the opening bell. Prior and upper resistance at 7,950-8,000 was cleared but held on the close back above the former and the 50-day moving average.

The Dow was also up 1.4% after testing a first half high of 26,527. Current and upper resistance at 26,250-26,500 was challenged but held on the close above the former and the index less than 2% away from all-time highs.

The Russell 2000 surged 1.1% following the intraday run to 1,560. Upper resistance from mid-May at 1,545-1,560 was tapped but held with the close above the 200/50-day moving averages getting 1,575-1,590 in play.

The S&P 500 soared 1% after reaching a morning peak of 2,930 while closing above the 2,900 level for the first time since early May. Fresh and lower resistance at 2,925-2,950 was tripped but held with the all-time high at 2,954.

Industrials and Technology were sector leaders after jumping 1.9% and 1.8%, respectively. Energy and Financials gained 1.4% and 1.3%.

Consumer Staples was the leading sector laggard after falling 0.5% while Utilities and Real Estate were lower by 0.4% and 0.3%, respectively.

 

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

   Todd Mitchell