Bulls Extend Winning Streak to 3-Straight
The market was higher for the 3rd-straight session on Wednesday as private sector employment soared with additional better-than-expected economic news keeping the bullish sentiment intact. The reported number of coronavirus cases of the deadly disease continues to rise in China but didn’t dampen enthusiasm as the outbreak is still mainly contained to that country.
More importantly, there are reports of some success in treating the virus using existing drugs along with U.K. scientists reporting a significant breakthrough on a vaccine. The major indexes look poised for higher highs but volatility remains elevated and the pullback in Tech off the high was a slight concern going forward.
The Dow soared 1.7% with the late session high tapping 29,308. Prior and lower resistance at 29,000-29,200 was cleared and held with a move above the all-time high at 27,373 signaling additional strength towards 29,400-29,600.
The Russell 2000 rose 1.5% after testing a late day high of 1,682. Near-term and lower resistance at 1,670-1,685 was cleared and held with a close above the latter getting the 1,700 level back in focus.
The S&P 500 surged 1.1% following the afternoon run to 3,337 while missing a new all-time high by a quarter-point. Current resistance at 3,300-3,325 was cleared and held with upside potential towards 3,350-3,375 on continued closes above the 3,335 level.
The Nasdaq was up 0.4% after trading to a 2nd-straight all-time high of 9,574. Fresh and lower resistance at 9,550-9,600 was cleared but held with a move above the latter signaling momentum towards 9,650-9,700.
Energy led sector strength after zooming 3.8% while Healthcare and Financials rallied 2%. Real Estate was the only sector laggard after slipping 0.1%.