Sector Update from 10-11-19

Materials and Industrial were the strongest sectors after jumping 1.9% while Technology and Energy rose 1.4%. Utilities and Real Estate were the weakest sectors after giving back 0.4% and 0.3%, respectively.

For the week, the best performing sectors were Materials (1.9%), Industrials (1.6%), Technology (1.3%) and Consumer Discretionary (1.2%). Utilities (-1.3%) and Consumer Staples (-0.9%) were the weakest.

Market Update 10-14-19/ Join Now!

Bulls Snap 3-Week Losing Streak

8:00am (EST)

The market was in rally mode from the start of Friday’s open and maintained momentum throughout the session in hopes of a good outcome in the trade talks between U.S. and Chinese representatives. Tweets from President Trump confirmed that the U.S. had reached what is being called a phase 1 deal with China that will be put into writing and signed.

6 Month – $462

The deal covers intellectual property, financial services and $40-$50 billion in agricultural goods purchase. Additionally, Treasury Steve Mnuchin confirmed that the tariff hike that was threatened for next week will not go forward now that a deal has been reached. The gains help snapped a 3-week losing streak for the overall market with the major indexes now in positive territory for the month, aside from the small-caps.

The Russell 2000 rallied 1.8% following the intraday push to 1,525 and close back above the 1,500 level. Prior and lower resistance at 1,515-1,530 and the 50-day moving average was tripped but held with a close above the latter and the 200-day moving average being an ongoing bullish signal.

The Nasdaq zoomed 1.3% after testing an afternoon high of 8,115 and easily closing back above its 50-day moving average. Prior and lower resistance at 8,100-8,150 was breached but held with a move above the latter getting 8,200-8,250 in play. The September highs tapped 8,243 and 8,237 and were a week apart.

The Dow surged 1.2% after trading to a 2nd half high of 27,013. Current and lower resistance at 26,800-27,000 was cleared and held with a close above the latter signaling additional strength towards 27,250-27,500 and the July all-time peak at 27,398.

The S&P 500 soared 1.1% following the intraday day push to 2,993. Lower resistance from early September at 2,975-3,000 was cleared but held with a close above the latter getting 3,025-3,050 and fresh all-time highs back in focus.

For the week, the S&P 500 and the Nasdaq added 0.9% while the Dow rose 0.6%. The Russell 2000 gained 0.7% and needs to clear 1,523 to turn green for the month.

Market Update 10-10-19

Bulls Recover Near-Term Resistance Levels on Mild Rebound

8:00am (EST)

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.