Articles from the Experts

The stock market showed continued strength on Thursday to fully recover the losses from Monday’s pullback with the major indexes now in positive territory for the week. The broader market and the small-caps joined Tech in reclaiming key resistance levels with the blue-chips maintaining momentum.

The Russell 2000 tested a high of 2,265 while ending at 2,259 (+1.8%). Lower resistance at 2,250-2,275 was cleared and held. A pop above the latter would be an ongoing bullish development for a run towards 2,300-2,325. 

The Dow tapped an intraday high of 34,879 while settling at 34,764 (+1.5%). Prior and lower resistance at 34,750-35,000 was breached and held. A close above the latter and the 50-day moving average would suggest further strength towards 35,250-35,500.

The S&P 500 closed at 4,448 (+1.2%) with the peak hitting 4,465. Near-term and lower resistance at 4,450-4,475 was recovered on the close back above the 50-day moving average. A move above the latter would signal additional strength towards 4,500-4,525.

The Nasdaq tagged a high of 15,085 before ending at 15,052 (+1%). Key resistance at 15,000 was recovered. Continued closes above this level keeps upside towards 15,100-15,250 in focus.

The stock market was in rally mood from the start of Wednesday’s open and into the Fed’s latest meeting minutes that came later in the afternoon. The Fed signaled it would reduce its monthly bond purchases “soon” while adding interest rate increases may follow more quickly than expected.

Half of the 18 central bank policymakers projected borrowing costs will need to rise next year. However, policymakers kept a hawkish stance after saying inflation could rise above 4% this year, more than double its forecast rate, and is positioning itself to act against it.

The Russell 2000 settled at 2,218 (+1.5%) with the intraday high hitting 2,234. Key resistance at 2,225 and the 50-day moving average were cleared but held. Continued closes above these levels would signal additional upside towards 2,250-2,275. 

The Nasdaq closed at 14,896 (+1%) after reaching a peak of 14,950. Prior and lower resistance at 14,850-15,000 the 50-day moving average were cleared and held. A pop above the latter would indicate ongoing strength towards 15,100-15,250.

The Dow tested an afternoon high of 34,440 before ending at 34,258 (+1%). Near-term and lower resistance at 34,250-34,500 was reclaimed. A move above the latter would suggest further gains towards 34,750-35,000 the 50-day moving average.

The S&P 500 finished at 4,395 (+1%) with the second half peak kissing 4,416. Key resistance at 4,400 was tripped but held. A close above this level would likely lead to a retest towards 4,425-4,450 the 50-day moving average.

The stock market took a beating on Monday as Wall Street fretted over the potential ripple effects and the default of a major Chinese real estate company, as well as ongoing debates concerning the U.S. debt limit. All the the major S&P sectors declined with Energy and Financials sinking 3.1% and 2.3%, respectively.

The Russell 2000 settled at 2,182 (-2.4%) with the midday low reaching 2,155. Prior and upper support from mid-August at 2,175-2,150 was tripped but held on the close back below the 200-day moving average. A drop below the latter would suggest ongoing weakness towards 2,125-2,100. 

The Nasdaq traded to an intraday low of 14,530 before closing at 14,713 (-2.2%). Upper support at 14,750-14,600 was breached and failed to hold on the close back below the 50-day moving average. A fall below the latter would indicate a further pullback towards 14,500-14,350.

The Dow ended at 33,970 (-1.8%) after kissing a low of 33,613. Prior and upper support from mid-July at 33,750-33,500 was breached but held. A close below the latter will likely lead to a further fade towards 33,250-33,000 and the 200-day moving average.

The S&P 500 tested a low of 4,305 before finishing at 4,357 (-1.7%). Mid-July and upper support at 4,325-4,300 was violated but held on the close back below the 50-day moving average. A move below the latter be an ongoing bearish development with additional weakness towards 4,275-4,250.