Nasdaq, S&P 500 Tap Another Round of Record Highs

U.S. markets continued their assault on all-time highs ahead of President Trump’s speech on trade policy at the Economic Club of New York. There was no fresh news on the U.S./ China trade front as Trump continued to repeat rhetoric an initial Phase 1 deal is close to being completed.

The major indexes faded off the highs in the final hour of action and dipped into the red after Larry Kudlow, Director of the National Economic Council, said no tariff adjustments will be made unless there is trade deal. The mostly higher close and tight trading ranges are signaling a possible consolidation phase for the overall market as long as volatility remains calm.

The Nasdaq was up for the 3rd time in 4 sessions after rising 0.3% while trading to an all-time intraday high of 8,514. Fresh and lower resistance at 8,500-8,550 was cleared but held with additional hurdles at 8,600-8,650 on a close above the latter.

The S&P 500 gained 0.2% with the midday and new record high reaching 3,102. Major resistance at 3,100 was cleared but held with uncharted territory towards 3,125-3,150 on continued closes above this level.

The Russell 2000 nudged up a third-point, or 0.02%, with the session peak reaching 1,604 shortly after the open. Near-term and lower resistance at 1,600-1,615 was cleared but held with a close above the latter and the May 52-week high at 1,618 getting 1,625-1,640 back in play.

The Dow was unchanged for the first time since 2001 after trading in a 135-point range while testing a high of 27,770. Key resistance at 27,750 was cleared but held with a close above this level and last week’s all-time top of 27,774 signaling blue-sky territory towards the 28,000 area.

Healthcare and Materials were higher by 0.6% and 0.5%, respectively, to lead sector strength. Real Estate and Energy were the weakest sectors after falling 0.7% and 0.5%, respectively.