[Chart courtesy of MarketWatch.com]
- Moving the markets
The markets edged higher to start the week with Boeing being a drag on the Dow capping the gains by some 100 points. The S&P 500 managed to finally hold above its 3,000 level but is now homing in on overhead resistance lurking at around 3,020. Then index also has failed to close the breakaway gap (blue circle), which means a retracement will be in order at some time.
However, for right now, the computer algos are chasing headline news and front running any suggestions that Beijing and China have successfully laid the groundwork to solidify a solution to the long-running trade disagreement.
Assisting the bullish theme was another short-squeeze, which helped the indexes to stay in the green and kept the mood upbeat.
In the meantime, the Brexit saga continues full force with UK’s PM Johnson experiencing a setback, which traders liked, since some are of the opinion that a Brexit without a trade agreement could disrupt global markets even further.
On the earnings front, we learned that 75 of the S&P 500 companies have reported with 82.7% showing better-than-expected results. Of course, the bar has been lowered considerably, but when it comes to headlines, a “beat is a beat.” This weak, we have 130 more candidates presenting their report cards, and we will have to see if the above numbers hold up.
On a personal note, I’d like to thank all of you who have emailed and wished me a speedy recovery from my eye surgery last Friday night. It was successful, and I thank you for your kind words.(more…)