U.S. markets were sluggish throughout Monday’s action after spending much of the session underwater despite ongoing and encouraging trade talks with China. Top economic adviser of the White House, Larry Kudlow, said he expects a lot of teleconferencing to take place this week, with U.S. and China getting closer and closer to a trade deal.
Kudlow added the U.S. made good headway with Chinese Vice Premier Li last week and that they are closer than they have ever been before with the two sides making more than guarded optimism about the deal. The mixed finish was slightly encouraging for continued market strength with volatility edging a tad higher but easily holding near-term resistance levels.
The Dow was down 0.3% following the intraday pullback to 26,246. Near-term support at 26,250-26,000 was breached but held with a move below the latter being a slightly bearish signal.
The Russell 2000 was lower by 0.2% after testing a first half low of 1,571. Fresh and upper support at 1,575-1,560 and the 200-day moving average was breached but held with risk towards 1,550-1,535 and the 50-day moving average on a move below the latter.
The Nasdaq was up 0.2% despite the backtest to 7,891 shortly after the opening bell. Fresh and lower support at 7,900-7,850 was breached but held with a move below 7,800 signaling a possible near-term top.
The S&P 500 extended its winning streak to 8-straight sessions after edging up 0.1% while tapping a morning low 2,880. Current and upper support at 2,875-2,850 easily held with a move below the latter being a slightly bearish signal.
Technology led sector strength after rising 0.4% while Energy, Consumer Staples and Consumer Discretionary gained 0.3%.
Utilities and Industrials paced sector laggards after falling 0.6% and 0.5%.% and 3.2%, respectively. Consumer Staples was the only sector laggard after falling 0.9%.
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