Bulls Recover Near-Term Resistance Levels on Mild Rebound
The market showed strength throughout Wednesday on reports China is open to a partial trade deal despite the recent blacklisting of Chinese companies. However, some of the stipulations were no more tariffs being imposed by the Trump administration, including duties scheduled this month and in December.
While nothing is certain, the positive chatter comes ahead of the upcoming 13th round of negotiations between top U.S. and Chinese officials. The major indexes made a run at near-term resistance levels but remain in a sideways trading range and trapped between their 50/200-day moving averages.
The Nasdaq rose 1% after tapping a midday high of 7,930. Current and lower resistance at 7,900-7,950 was cleared and held with a close above the latter getting 8,000 and the 50-day moving average back in play.