China Trade Issues Still in the Headlines, Stocks Retrace Overbought Conditions

China Trade Issues Still in the Headlines, Stocks Retrace Overbought Conditions

$DIA, $SPY, $QQQ, $RUTX, $VXX

Fake News: reports of canceled trading meeting with Chinese officials untrue, there was No meeting planed to cancel.

“The big meeting that everyone’s moving towards will be Vice Premier Liu He is coming at the end of the month, as I think everybody knows. That will be a very important meeting, that will be a principals’ meeting. And everyone’s looking towards that.”

Mr. Kudlow noted there were not any other meetings on the schedule to cancel.

10 of the 11 S&P 500 sectors finished lower with energy (-2.2%), industrials (-2.1%), and communication services (-2.0%) underperforming the broader market.

On the other hand, the utilities sector (+0.2%) was the only group to finish with gainers

Tuesday’s selling sent the S&P 500 below its 50-Day MA at 2623, then the benchmark index closed above that Key technical support mark after President Trump’s NEC Director Larry Kudlow refuted earlier reports that a preparatory US-China trade meeting had been cancelled.  Mr. Kudlow stated simply that the earlier reports were not true. The market rallied off of the lows into the close off of very oversold marks.

Tuesday the major US stock market indexes finished at: DJIA -301.87 at 24404.48, NAS Comp -136.87 at 7019.87, S&P 500 -37.81 at 2632.86

Volume: Trade on the NYSE came in at 973-M/shares exchanged

  • Russell 2000 +8.1% YTD
  • NAS Comp +5.8% YTD
  • S&P 500 +5.0% YTD
  • DJIA +4.6% YTD

HeffX-LTN’s overall technical analysis for the major US stock market indexes if Neutral to Bullish.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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