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!