U.S. markets showed strength on Tuesday’s open despite mixed economic news and continued trade rhetoric after President Trump said his administration was not ready to make a trade deal with China. The strength faded about an hour into the session with the major indexes assuming a tight trading range before a mostly lower close as selling pressure picked up in the final hour of action.
Near-term support levels held with the overall market barely avoiding lower lows. However, volatility is once again pushing key levels of resistance and remains at heightened levels.
The S&P 500 slipped 0.8% following the late day backtest to 2,801. Major support at 2,800 held for the 3rd-straight session with risk towards 2,775-2,750 and the 200-day moving average on a move below this level.
The Dow was off 0.9% after trading to a 2nd-half low of 25,342. Upper support at 25,500-25,250 failed to hold on the close back below the 200-day moving average with a move below the latter being an ongoing bearish signal.
The Russell 2000 fell 0.7% after tapping an afternoon low of 1,503. Near-term and upper support at 1,500-1,485 held with risk towards 1,475-1,460 on a close below the latter.
The Nasdaq was down 0.4% after tapping a low of 7,603. Major support at 7,600 held by a thread with a close below this level opening up risk towards 7,550-7,500 and the 200-day moving average.
Communication Services was the only sector to show strength after rising 0.6%.
Consumer Staples and Utilities led sector weakness with losses of 1.6%. Healthcare sank 1.4%.
I hope this helps you prepare for the trading day. Make it a great one!